Contemporary Business Economics

Contemporary Business Economics

INTRODUCTION
Business Economics is a business sector with a very dynamic competition that tends to
develop at a very fast pace and the leader of such a corporation needs to be able to understand
the requirements and adjustments that may need to be implemented in the organization in ability
to adjust rapidly (Haddadsisakht and Ryan, 2018). This is often referred to as operational
economics whereby economic model and management methods are implemented for improved
decision making. Sainsbury's company has been selected for the better understanding of UK
retail industry. It was founded in 1869, some 151 years ago, by John James Sainsbury. The
report covers several aspects such as demand and supply rule and the variables impacting curves
and causing them to move to the left or right side.
MAIN BODY
1. Explain the law of demand and factors which affecting the demand curve
Law of Demand: It is stated when all the factors are fixed, the quantity demanded for a
good has the reverse connection to a product’s price. This means the demand is decreasing as
prices rise. Below mention visual representation indicating negative relation between the
demanded quantity and price. As the price of the commodities decreases in comparison to
Sainsbury's, as the principle of demand implies, the need for its goods increases. Company's
division of product production must set the rates where maximum competition and higher profits
will be obtained.
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