Contemporary Business Economics: Analysis of Law of Demand and Law of Supply in Unilever

Contemporary Business
Economics

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Law of Demand...........................................................................................................................1
Law of Supply..............................................................................................................................5
TASK 2............................................................................................................................................8
Economic theories.......................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Economics studies scarcity and implications for usage of resources, production, growth and
welfare of goods addition to services for concerning variant of complex issues. Business
economics refers to a field of applied economics comprising study of market, environmental and
enterprise based issues that corporations faces (Varshavskaya and Kotyrlo, 2019). It is applied to
examine demand and forecasting, production and cost analysis, resource allocation, uncertainty
analysis and inventory management. For the report, Unilever is selected which is consumer
goods corporation popular for products such as condiments, wellbeing vitamins, food, cleaning
agents, beauty commodities, personal care and hence forth.
The assessment analyses micro economics concepts including law of demand and law of
supply. It also comprises information based on emerging theories in 21st with those of 20th
century.
TASK 1
Law of Demand
In a business, demand curves along with demand schedules are essential tools that are used
for the purpose of summarising relationship among price and that of quantity demanded. As per
Krugman (2021), law of demand could be termed to an economic concept which states demand
of product at particular price (Krugman, 2021). It says that price of organisational offering and
quality demanded have inverse relationship. In Unilever, application of law of demand theorises
that lower price can encourage more people to make purchase of consumer goods at specific
price.
1