Contemporary Business Economics: Demand and Supply Concepts of Marks and Spencer

BM533: Contemporary
Business Economics

Table of Contents
Introduction...................................................................................................................... 3
Main Body........................................................................................................................ 3
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).........................7
Task 2............................................................................................................................ 10
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................................................................................................. 10
Conclusion..................................................................................................................... 13
References ....................................................................................................................14

Introduction
Business economics is the process that used in studying the various attributes
faced by companies. In the above mentioned field, components and functions of market
place were analysed such as supply and demand. It concludes certain economic factors
that impacting corporation operation. Business economics analysed the issues
occurring in corporation sectors such as market and financials related issues through
theories and quantitative methods. In this given report business concept of Marks and
Spencer will be taken into consideration (Andjelkovic and Radosavljevic, 2019).
Marks and Spencer is a British multinational retail brand with the Headquarter in
London. It was founded in 1884 by Michael marks and Thomas Spencer. In this
mentioned report micro economics concept of above listed company along with demand
and supply concepts will be discussed. Further, comparisons of some theories and
models of 21st as well as 20th century and their relation with modern business practice
will be illustrated in given coursework (Bozok, 2019).
Main Body
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)
Law of demand
The law of demand is the concept that shows the factors through which an
demand for product and services can varies. Basically the law derives relation between
price and demand. Any changes in the price can diversely affects its demand in the
marketplace. The mangers of Marks and Spencer price allocation on products directly
affects the demand of targeted customer in market (Henderson, 2021).

 Higher the price lower the demand.
 lower the price higher the demand.
The demand varies inversely with price which states due to diminishing margin
utility. Hence the price plays a vital role in increasing and decreasing sales of given
company. Through the law of demand mangers of Marks and Spencer were able to
identified the current scenario according to customer behaviour that succours into
priced their product into market.
Movement in demand curve
The movement in demand curve basically depends on when commodity changes
in quantity demands as well as price moves the curves in specific direction. Through
these factors the movement of curve moves from upward to downward. The movement
done along the curve as well as the determinant of such changes is because of price. In
Marks and Spencer the demand curve of their apparel moves upwards and downwards
through the price set by them (Hodicky and et. al., 2020).