Monday, November 1, 2010

Love and Economics

Hmmm… now you must be thinking what is the similarity between these 2  terms. For few.there is no relation between them, love is out of the syllabus or economists and economics is out of the syllabus for lovers.. Lets check out how the principles of economics suit love.

Principle of Demand and Supply—The very first principle of economic and very true for today’s life. It says, when demand is high and supply is low, the prices rise and vice verse.

        Same happens in love, when demand of some special feelings /someone special is high and supply is less, we tend to pay high price for the same. When the person is not available, the supply is low, and the value of person becomes high.Vice verse, when the person is available, the supply is high, and so we depreciate the value of that person and take it for granted..

Division of labor—This principle is given by Adam Smith. Smith says “the division of labor is limited by the extent of the market “. 
       It means, you can divide the labor and get work done by many people. Take an example, you can get your cloths pressed by someone, your house will be cleaned by some one.Your cloths will be stitched by someone else. But you need to pay the cost for it. And there are some tasks which could not be divide or delegated to anyone , but has to be done by you only.

     Sounds familiar?? You can easily ask someone to book movie tickets for you.. Or someone will do home delivery of flowers to your beloved’s home. But, you cant hire anyone for going on date on behalf of you. You cant hire anyone to hang out with your loved one.

Principle of Saturation Point- When hungry, the first bite will give you utmost satisfaction, as you will keep eating , the satisfaction level will decrease. And at some point of time, you will feel that you are done and cant have one more bite at all. This is called the principle of Saturation point. From depriving till satisfaction, your saturation will increase. The first bite of food, the first car, the first salary gives you utmost thrill and as the time passes and you are having more and more of it, you will feel saturated.

This is also familiar, right? You may miss the thrill of your first year with your beloved, of your life partner. The first outing, no matter how cheap it was, is always near to your heart.May be later you will cherish the memories of that trip and forget your Switzerland trip...

Principle of Value and Price- The price is forgotten, the value is never.  The true principle of economic, about the QUALITY.. and it is applicable in real life also...not only in relationship..We cant choose relatives, but can surely choose our friends and loved once. The good relation is not one which is long, but it is the one which is deep. Friends do not need to talk often, but need to understand the feeling of one another without talking. Thats what quality of relationship is. Do I  need to elaborate??

More analysis will be done on this tomorrow..till then keep reading..

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