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SSSSS [86.1K]
3 years ago
10

Example of

History
1 answer:
serg [7]3 years ago
4 0

Answer:

- Income Effect

A change in consumption due to a change in income.

Example: When you buy cheaper breads after you get a salary cut.

- Normal Goods vs. Inferior Goods

Normal goods : The demand of this product will increase when people's income increase

Inferior Goods: Demand of this product will decrease when people's income increase.

Example: Luxury clothes and less-known brand clothes.

- Complements

A product that is used alongside of other products. Cannot really stand alone.

example:  Smartphone case is a complement product of your smartphone. No-one really by the case without having the phone.

- Substitutes

A product that is used in exchange of another product.

Example : When you drink tea after you run out of coffee.

- Fixed costs

A cost that remain the same regardless of how much goods or services you produce.

Example: Bulding rent.

- Variable costs

A cost that will increase when you increase the production of your goods or services.

Example: Cost of materials.

- Consumer Surplus

A difference betweenthe price that people willing to pay compared to the actual price that they pay.

Example: If you have a $500 budget for a laptop and you managed to purchase it for $400, you have a $100 customer surplus.

- Bartering

when you exchange one product with another without using any monetary instrument.

Example: When you exchange your Jacket with your friend's pants.

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