How Economic Concepts are applicable in Smartphones.
SAMSUNG SMARTPHONES
Law of demand- Suppose during the festive time like Diwali,
price of the smartphone decreases and, any discounts are given during the
festive time. So in this case the demand of the smartphone
increases. So it
states that as the price of the product decrease the demand increase and vice
versa.
Law of Diminishing Marginal Utility- Suppose I am using a
Samsung smartphone Galaxy A5 since 3 years. So day by day as I am using the
marginal utility derived from each additional unit get decrease day by day.
People face trade off and Opportunity Cost- Suppose I went
to Reliance Digital to by smartphone. So there are many varieties of phones.
After sometime I came across two phone i.e. Samsung S9 and IPhone X. So, finally
I decided to buy Samsung. Here I am sacrificing IPhone X for the Samsung. This is
called People face trade off. And the rate for which I am sacrificing is called
Opportunity cost.
People Respond to Incentive-If during a season there is a huge sale and discounts on the
Samsung smartphones. So at that time most people will buy smartphones for that
incentive i.e. discounts and offers.
Oligopoly Market- Samsung Smartphone falls under the
category of Oligopoly Market. It is a type of market where firm can sell either
identical or similar product. Here the entry of the firm is restricted. They
can therefore influence price and affect the competition.
Example: Samsung and Apple
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