Business Economics - Polo Mints
Added on 2021-01-02
16 Pages3734 Words277 Views
Businesseconomics
Table of ContentsINTRODUCTION...........................................................................................................................1Task .................................................................................................................................................1Supply and demand analysis allows us to investigate and understand the operation of markets......................................................................................................................................................1Relationship between demand, supply and price:- .....................................................................1Equilibrium of supply and demand :- .........................................................................................3Changes in demand :- .................................................................................................................4Change in supply :- ....................................................................................................................4Investigate through demand and supply in market operation :- .................................................5Impact of demand and supply upon price :- ...............................................................................7Importance of demand and supply for business decision:-.........................................................8Conclusion ......................................................................................................................................8REFERENCES..............................................................................................................................10Shifts in the Supply Curve. 2017. [ONLINE] Available through:<https://www.toppr.com/guides/economics/the-theory-of.../supply-curve-of-a-firm/>...............11
INTRODUCTIONBusiness economy plays vital role in organization and it studies in every field oforganization like finance, marketing and environmental issues that face by every organization. Italso analyses that available resources liker labour and capital for evaluate that optimumutilization of scarce resources. Because human need is unlimited and resources is limited so itfocuses on demand and supply and maintain it as well as it also analyse that factors affecting toorganization. Polo mints is a brand that it introduced in 1948 and it is brand of United Kingdom.Polo mints is a breath mint that structure is mint with one hole in middle. This report will becover that supply and demand analysis, through this investigate markets operation, factors thateffect of price of polo mint.Task Supply and demand analysis allows us to investigate and understand the operation of markets.Supply and demand is important and it plays important role in markets. Demand refers tothat quantity of polo mint is want to through buyers and it is also on depend on price of productbecause if product price is affordable and reasonable so its demand increase so it is calleddemand relationship.Supply refers that quantity offer by polo mint in market. So it means that if producer ofproduct is satisfied from amount of good that they receive so it offers and supply products. It alsomajorly depend on price if customer willing with price of product so supply of product ismaintained.Relationship between demand, supply and price:- Law of demand :- law of demand is based on price because if polo mint's increase theirprice of product so customers decrease their demand. It means that if price is increase of productso demand is decrease. Through this if price is increase highly so customer ignore purchase ofproduct on high price and it start consumption of alternative product. If price of product isdecrease so it effects on demand of product and customers demand increase.1
From this diagram A,B and C point show direct relation between price and demand. Q1,Q2 and Q3 shows quantity of product that depend on price P1,P2 and P3. In this diagram itshows relation that if price is high so demand is low and it is show on A point and through Cpoint that it show that when price is low of product so demand is increase and customer consumeand demand of large quantity.Decrease in demand :- demand decrease due to income of customers decrease anddemand and supply stable so it also reduces demand of product. So if price and supply of productchange so it demands of product also change. And demand curve shift in leftward. In abovediagram DD shifts to D1.2Illustration 1: demand relationship[Source :Law of Demand, 2017]Illustration 2: decrease in demand
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