Study about EcOnomics

Economics

This is first time when I got a subject like economics. I was thinking that it is only a subject and I have to pass in this subject.

It's not just a subject to simply study But on the other hand when I started studying  I learnt that my life is surrounded by economics. I am learning the concepts of microeconomics like
1.) Supply and demand
2.) Elasticity
3.) Diminishing utility
4.) Consumer & producer surplus
5.) Various curves etc.

BLOGGING TIME

I have to write every week a blog on concept on economics with real life example its very good things for me because by blog we have to first learn the concept then also we can write any  real life example so blogs helps me to understand between my life and economics concept.
Now a days I know economic more than previous month. because now I get to know how to apply economic concept in our life And it gives a new and unique way to study where we can directly relate our real life scenarios.

SIMULATION GAME MARKET

In economics we have a simulation market in which we actually doing a new thing by fixing the price, capacity cost etc. This all can be done by normal distribution because of this i know how price differentiation also affect to the market.

Look Around! Economics is Everywhere

1.     Principle of Diminishing Marginal Utility

The more of a good that one obtains in a specific period of time the less the additional utility derived from an additional unit of the good.

Example: A movie can’t be run for a long time like six month or more. After each time watching the movie, the marginal utility start decreasing. And one day it will be negative. Then no one will watch the movie. This is the reason underlying behind the fact.

2.     Opportunity Cost

Opportunity cost is the cost of something what you gave up to get an another alternative thing.

Example: People are leaving villages and settling down in town or city. They are doing this for extra benefit which they will get from town or city and for getting the extra benefit they are giving up the opportunity which they can get from village.

3.     Law of Demand

When the demand increases, price of any product also increase and when demand decreases, the price also decreases.

Example: In hot summer days, Price of ACs increase sharply. Because at that time, demand stays in pick.

4.     People Respond to Incentive

Example: People always go to that shop from where they get maximum discount. The discount is incentive to the customer. Some shop also offers easy EMI scheme. That is also an incentive to the customer,

5.     Marginal Rate of Substitution

MRS is a measure of number of units of Y that must be given up per unit of X added so as to maintain a constant level of utility.

Example: Some people travel from their work place to home every day to save money. They sacrifice their family life to save money. Some people stay at city, nearer to their work place, to save time. They’re able to give a quality time to their family, but they sacrifice their savings because the ‘cost of living’ in city is high.