Contemporary Business Economics

CONTEMPORARY
BUSINESS ECONOMICS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Law of demand and movement along with same demand curve and changes within the
demand curve..............................................................................................................................3
Law of supply along with movement in supply curve and changes within the supply curve.....5
TASK 2............................................................................................................................................8
Comparing and contrasting between the emerging theories and models in 21st century
contemporary economics theories with the 20th century and relating both with the modern
business.......................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business economics is the field related with applied economics and undertakes the use of
different economic theories and quantitative methods for analysing the business enterprises. It
also involves the factors contributing to the diversity relating to the organisational structure and
the relationship among the phone and other factors like capital labour product market and others.
The present study outline the law of demand and how the law of demand have some changes
within it and the movement along with the same demand curve. Furthermore NG similar manner
law of supply will be discussed along with the movement and changes within the supply curve.
In the end the discussion will be undertaking place on comparison of economic theories of 21st
century and 20th century and how it relates with the modern business.
TASK 1
Law of demand and movement along with same demand curve and changes within the demand
curve
The law of demand state static other things being constant the price and quantity
demanded are inversely related with one another. This simply means that when the price of the
product is increasing then the demand of that product will decrease. this is particularly because
of the reason that increased the prices of the product are increasing then the consumer will not
buy the product because of high prices. On the other hand in case the prices of the product will
decrease then consumer will buy the product in more quantity.
Movement along with same demand curve
The movement along the same demand curve is being caused by the changes within the
price only. This movement along the same core and was the shift of the demand curve and this
can be either an increase or decrease in the demand. The movement along with the demand curve
is occurred when there is a change within the price of the product (Brenner, 2018). Hence the
major factor affecting the demand to move along the same demand curve is the only factor price.
Hence movement along with demand curve is happen due to the price only and not any other
factors.

Thus with the help of the above chart it is clear that when the price was P1 then the
quantity demanded was Q1. As the price decreased to P2 to the quantity demanded increased to
Q2. In the similar manner when the prices increased to p0 then the quantity demanded decreased
to Q0. Hands with it can be stated that the price is the only factor which affects team quantity
demanded of the product. Hence, when the quantity demanded changes due to changes within the
price then there is a movement along with the same demand curve and the demand curve does
not shift to any other place.
Shift in demand curve
The shift in demand curve is being defined as the changes within the demand curve due
to change within the determinants of demand other than the price. Hear any change within the
price does not affect the demand of the product of the service. But the shift in the demand curve
is majorly due to the factors other than the price (Chang, McAleer and Wong, 2020). These
factors involves the following different factors-
 The major factor which affects the ship within the demand curve is the income of the
buyers. This is pertaining to the fact that increase the income of the buyer is increased
then the demand of the luxurious product will increase. Hence in this case the law of
demand does not effective demand of the product. On the other hand in case the income
of the buyers decreases then in this case the demand of the normal goods and the
necessity goods will increase.
 In addition to this another major factor affecting the shift within the demand curve is the
changes within the consumer trends and taste. Hence in this case as well the demand of