Contemporary Business Economics: Demand and Supply Analysis

Contemporary business
economics

TABLE OF CONTENTS
INTRODUCTION...............................................................................................................3
TASK 1...............................................................................................................................3
LAW OF DEMAND, MOVEMENT ALONG THE SAME DEMAND CURVE..................3
LAW OF SUPPLY, MOVEMENT ALONG THE SAME SUPPLY CURVE.....................5
TASK 2...............................................................................................................................7
CONCLUSION...................................................................................................................9
REFERENCES................................................................................................................11
Books and Journals......................................................................................................11

INTRODUCTION
Contemporary Business Economics are those that will revolve around the different
aspects of economic approaches which are traditional and are also those that are
mostly related with behavioural economics (Mazurek and et.al, 2019). There are
different economic theories that are involved in it which will reflect upon the choices that
are included in quantitative methods of any organisation or a business. It is a
requirement that the quantitative analysis will have to be carry forwarded in order to
determine the factors which are necessary to analyse the diversity of different structures
in the organisation. The entire report will portray different aspects that are related in the
contemporary business economics and that with regard to the practical information
which is derived from an organisation or a business. Its contribution in various factors of
an enterprise are listed and explained in detail.
TASK 1
LAW OF DEMAND, MOVEMENT ALONG THE SAME DEMAND CURVE
The study of demand curve in Economics is said to be one of the crucial component in
order to identify the distinction between movement and shift of the curve which is also
known to be the demand curve. It is a necessity to understand this difference because it
will contribute for a greater change in the policy of economic integration. The demand
curve is said to be a representative aspect of many organisations operation policy
where every organisation is said to be dealing with its goods and services (Rand, 2018).
The demand that is oriented where the different products and services are the
operational activities are said to be affected by the changes that are pertaining and the
sector. Based on these factors and the change that is inhibited there will be a drastic
change in the demand curve. The factors that will contribute for the change name is
demand curve will include the change in demand as well as change in quantity demand.
Movement of demand curve: an organisation will work for the change in quantity as
well as the prices that are oriented where a definite set of product. This is because the
community or the commodity will demand these entities and these factors are said to be
those that are important in determining the choices of the organisation with regard to
customer base. There is also a criteria that is to be ensured which will include the

customer choices. The only thing that is constant is the taste of the customer and it can
also change based on the variations that are being taken up by the organisations with
regard to prices and the supply of goods. In such a scenario the demand of the product
will be the same and there will not be any change in customer perception towards the
product but the variation comes in the pricing strategy (Conway and Eckersley, 2017).
With this change in pricing strategy the quantity with which the customer base will
purchase a product or get the services will decrease. This can be regarded as a
movement of the demand curve. The shape of this curve will depend upon the
variations that occur in the organisation with regard to quantity and the Expectations of
the consumers.
Fig: 1- Movement of demand curve
In the picture above OP will determine the price of commodity. And the demand which is
included in the graph is indicated by OM. the increase in price is indicated from OP to
OP". Then in this case there will be a quantity demand for all which is indicated by a
decline in the level till OL. For this particular case the moment of demand curve is
represented to be upward. When there is a decrease in price and that in this graph is
indicated by OP to OP' then automatically the demand with respect to quantity will rise
to ON. In this scenario the demand curve will be spotted downward.
The shift of demand curve: the shift in this demand curve will occur when a particular
commodity is determining the standards of quantity or the change that has occurred in
the aspects of quantity at every stage of pricing taking into account all the factors that