Explaining the Law of Demand and Supply in Contemporary Business Economics

Contemporary Business
Economics

Table of Contents
TASK 1............................................................................................................................................3
1.1 Explain the law of Demand, movement along the same demand curve (with the aid of
diagram) and changes in demand curve (with the aid of diagram)..............................................3
1.2 Explain the law of Supply, movement along the same supply curve (with the aid of
diagram) and changes in supply curve (with the aid of diagram)................................................5
TASK 2............................................................................................................................................8
Compare and contrast emerging theories and models in 21st century contemporary economics
with those of the 20th century, and relate both of these to modern business practices...............8
REFERENCES..............................................................................................................................11

TASK 1
1.1 Explain the law of Demand, movement along the same demand curve (with the aid of
diagram) and changes in demand curve (with the aid of diagram).
The concept of demand is known as amount which is paid by the consumer for a product or
service. It is evaluated that concept of demand depends upon the requirements as well as the
basic need of the consumer. There is also slight difference between or need and want of a
customer. There are several economists who have provided their views upon the demand for stop
it is also said that fonts and needs are not the same thing according to the views of customer full
stops when abortion is not having enough amount or money to pay for a product bus service he
or she can move to another product that is a substitute of that product. When the product is not
being bought by customer and is not able to manage the payment of products then it is having no
effect on the demand. It can also be said that there is deeper understanding of Dave particular
gorgeous offices amount paid which is known as price. latest total number of amount that is
purchased by the unit for different service and products (Chi, Huang and George, 2020). it is
known as the rise of product which is rising due to the declining quantity. It is also said that
when there is decline in price then quantity of that product is increased within market. It can be
explained with an example that when price of onion is increased then demand automatically
declines. People consume the product when it is cheaper. There are several economists who have
provided their thoughts on the basis of relationship between price and quantity. It can be
concluded that there is inverse relationship between price and quantity but then market. This is
known as law of demand. According to the law of demand, it is concluded that there are different
variables on which demand has being a constant factor and price and quantity I haven’t invoiced
relationship. This can be explained by the following graph -

Figure 1Demand curve
(Source: Demand concept, 2019)
From the above demand curve, it can be easily concluded that the relationship between price and
quantity is a normal golf which demonstrate or inverse relationship. it is said that when price
rises then Quantity demanded will be decreased (Cohen, 2021). This is analysing from above
curve that price connected with demand curve is providing a sign of inverse relationship between
price and quantity which is demanded. This cough shows are proper effective product in that
area. It is also said that the relatively flattering steep or straight curve reflects the fundamental
similarity between slope down from left to right (Hafezalkotob and et.al, 2018). The increase in
price and quantity decline states that when price of a product is increased then quantity will
automatically decline in terms of demand. When there is change in demand it is associated with
slight shift on the entire demand curve. Moreover, it can be very that different factors linked with
demand including preference, income, substitute product and population are also affected. There
is change between quantity demanded then it refers to the movement of demand curve in
Association with management of change in price (Nadal, Szklo and Lucena, 2017). According to