PLEASE WRITE AN EASSY ABOUT YOUR OWN EXPERIENCE/OBSERVATION FROM REAL LIFE THAT IS BASED ON ECONOMIC CONCEPTS FOLLOWING:
OPPORTUNITY COST:WHAT IS THE OPPORTUNITY COST OF any activity?
ELASTICITY AND TIME HORIZON: buying an expensive air ticket in an emergency situation compared to a longer period to plan a trip and more flexibility /response to price changes.
DIMINISHING MARGINAL UTILITY
MOST LIKELY STORY (WHICH IS PERFECTLY FINE) IS where you compare the additional (marginal) cost versus the marginal benefit and then make a decision as to whether it is worthwhile doing that activity or not.
COMBINATION OF DIFFERENT CONCEPTS IN 1 STORY: E.g. I mentioned in class today (wed, May 22) how my Willingness to pay for the BTS concert in NY City was high.I was prepared to pay $400 (MC). However combined with the expensive Airline ticket ($900), I had to consider my budget constraint. The short time horizon made the price inelastic. I was also frustrated about lack of competition in Airlines industry.
PROVIDE A BRIEF CONCLUSION ABOUT THE STORY