Industrial Marketing Management

Running head: CONTEMPORARY BUISNESS ECONOMICS
Contemporary Business Economics
Name of the Student
Name of the University
Author note

CONTEMPORARY BUISNESS ECONOMICS1
Table of Contents
Introduction........................................................................................................................2
Presentation.......................................................................................................................2
Law of demand in case of retail business......................................................................2
Law of supply in case of retail business in UK...............................................................5
Contrast and compare emerging theories and models of 21st century with the 20th
century............................................................................................................................7
Conclusion.........................................................................................................................9
References.......................................................................................................................10

CONTEMPORARY BUISNESS ECONOMICS2
Introduction
This paper intends to examine the contemporary economics of the 21st century
as well as 20th century. There are several aspects of the contemporary economics of the
20th century and 21st century. Furthermore, this paper analyses all the vital
developments of the contemporary economics of 21st century and 20th century (Ward
and Rhodes 2014). In addition, it also compares and contrast the theories and models
of economics. Moreover, this paper also examines the microeconomic factors such as
demand and supply of the retail business. Moreover, this paper taken into consideration
retail business of the UK, Tesco (Leow, Mues and Thomas 2014). Thus, it emphasizes
on the market condition of the company. It shows changes in demand curve and
movement along demands curve with respect to change in market factors. In addition,
this paper also illustrates changes in supply curve and movement along supply curve
with respect to change in market factors. Therefore, this paper gives the complete idea
about the retail market of the UK with reference to Tesco.
Presentation
Law of demand in case of retail business
The relationship between quantity demanded and price of a product is shown by
the demand curve (Chaffey, Hemphill and Edmundson-Bird 2019). Moreover, over a
period of time, the quantity of a product the consumer is willing to buy for various prices
is known as demand. When there is change in price of the product, there is movement
along the demand curve. There are several factors other than price that may change the
demand (Sakuma et al. 2019). On the other hand, when there is change in one or more
factors, the demand curve changes or shifts. There is an inverse relationship between
the quantity demanded and price of the product (Rhodes and Brien 2014). Hence,
demand curve is the downward slopping curve, where price is plotted on the vertical
axis and the quantity demanded is plotted on the horizontal axis. Therefore, the price
and quantity demanded for a particular firm is depicted by the demand curve. Likewise,
the price and quantity demanded for the whole market is also depicted by the demand
curve. The behavior of the competitive market is estimated with the help of demand

CONTEMPORARY BUISNESS ECONOMICS3
curve (Hu and Xie 2014). Retail business is one of the key segment of the UK economy.
The Tesco possesses a major market share of the general merchandise and groceries
of the UK. However, the business went through some changes, which affected the
demand for the products of the company (Hildenbrand 2014).
Figure 1: Movement along the demand curve
Source: (Hildenbrand 2014)
Figure 1 represents the movement along the demand curve. There exists high
competition in the retail general merchandise and grocery segment of the UK. Though,
the market also witnessed lower price inflation. In addition, competition induced by the
presence of the discount stores such as Lidl and Aldi (Triantafyllou, Cherrett and
Browne 2014). Thus, in order to beat the harsh competition of the market, Tesco
slashed the prices of the fresh food lines in 2018. Over the past three years, the
company dropped the process of the product by 6%-7%. Moreover, it scaled up the sale