Economic Laws: Subjectivity

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Economic Laws: Subjectivity
Economic laws are a set of essential philosophies reflecting on the study of economics and how the economy works (Hardt, 2017). The major economic laws known include; scarcity, subjectivity, competition, inequality, ignorance, subjectivity, imperfection and complexity. Each of the stated rules are applied differently in accordance to how a given business is transacted and the parties taking part. These laws are aimed to governing the major economic activities which are production, consumption and exchange of goods and services. It is of importance to know the type of economic law, putting in account matters commodity bundle, opportunity cost to obtain a commodity the indifference curve.
The situation shows that Mike trades six books for three games. The law that is basically applied is the subjectivity law, which states that prices are dependent on preferences. We find out that Mike has had to trade more commodities at getting less, but he does so lest he wants to remain bored reading the books. According to the law, a customer is not really concerned about the cost of the commodity as long as he/she gets it. This may sound awkward. One limitation is that sellers can decide to hike prices unnecessarily as they know buyers are in dire need of the commodity.
Commodity bundle is a unit of the collection of the complete set of goods produced and sold in the world market. The set units are basically used to track the progress of inflation in a given economy. As per the case of Mike and Abdul, each of them needs a new product. Initially, Mike has got comic books with no game while Abdul has games with no books. As a result of the trade, Mike remains with fourteen comic books but gains three of Abdul’s games while Abdul remains with seven games at a cost of six books. As shown in the preceding statements, the commodity bundle of Abdul Mike are clearly depicted
Opportunity cost, otherwise k...