Saturday, September 1, 2018

How Economics is Related to many Situations

 Demand and Supply:

Demand and Supply are the most used terms in Micro Economics and in our daily life.Demand an Supply are using for the price determination of a particular product in market.

         "Demand is based on all about consumer's desire and their ability and willing towards purchasing that particular good even though when the price varies".

         "Supply is also about the willingness and ability of the producers to offer the goods in the market for sale at various prices".

Example :

When I was working in Chennai during the time period of 2016  at that time the death of former Tamil Nadu  CM Jayalalithaa was happened. So during that time Tamil Nadu State declared a bandh for everyone. So I can't even find a single shop is opened at that time. During that time period where I was staying in an apartment. One person used to deliver the water can for us everyday.Usually the cost of water can is Rs. 30- 40 only. Due to the lack of drinking water availability the price of water cans has drastically increased to Rs. 140 /. Even though the price is high, we are willing to pay for that. So here as the price is high the demand is also high due to lack of supply. 

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