Contemporary Business Economic: Analysing Law of Demand and Supply with Emerging Theories and Models

BM533 Contemporary
Business Economic

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Analysing law of demand, movements along the same demand curve and changes in demand
curve with its factors....................................................................................................................1
Analysing law of supply, movements along the same supply curve and changes in supply
curve with its factors....................................................................................................................4
TASK 2............................................................................................................................................7
Analysing compare and contrast emerging theories and models in 21st century contemporary
economics with those of20th century and relate both of these to modern business practices.....7
CONCLUSION................................................................................................................................9
........................................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Contemporary business economics refers to a framework of applied economics that
describes the various issues such as environmental, financial, market and organisational, faced
by the company in same time (Audretsch, 2018). Scarcity, costs and benefits, supply and demand
and incentives are the main concept of economics that provide knowledge about how people
make decision. For this project, selected company is Tesco, it is a multinational company of UK.
It is founded in 1919 by Jack Cohen and its Headquarters is in Welwyn Garden City,
Hertfordshire, England, UK.
The report describe law of demand, movement along the same demand curve and factors
that change demand curve. It further describe law of supply, movements along the same supply
curve and factors that change supply curve. It also describe compare and contrast emerging
theories and models in 21st century contemporary economics with those of 20th century, and
relate both of these to modern business practices.
TASK 1
Analysing law of demand, movements along the same demand curve and changes in demand
curve with its factors
Tesco is the third largest retailer in the world and provided its services in United
Kingdom, Hungary, Ireland, Slovakia and Czech Republic. Its products are available in
Superstore, Hypermarket, Convenience shop and Supermarket. It has around 7,005 shops and
423,092 employees which helps them to operate their functions in effective manner.
One of the best selling product of Tesco is Bananas and it comes from Rainforest
Alliance Certified farms where labour conditions are improve continuously as well as protect
environment in effective manner in order to promote sustainable production in all over the world
(Babii, 2018). It ensured to increased workers representation and welfare by working closely
with farmers. It makes direct and long term relationship with their suppliers in order to help them
to invest in their workforce and farms in effective manner.
Market structure for Tesco is oligopoly because there are only few competitors in market
and they control supply of their products in effective manner. In oligopoly market structure, few
firms are available in market with large number of market share as well as has high barriers for
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