Exploring the Law of Demand and Supply in Contemporary Business Economics

Contemporary Business
Economics

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 Explain the law of Demand, movement along the same demand curve and changes in
demand curve with its factors......................................................................................................4
1.2 Explain the law of Supply, movement along the same supply curve and changes in supply
curve with its factors....................................................................................................................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
Through behavioral economics, scholar has successfully challenged the traditional notion that
economic behavior of people is bound by logic and theories. Through his research, he established
that people's own perceptions, their beliefs about morality, their own needs, facilities, etc. have a
major impact on their economic decisions. Two of the biggest subdivisions of the study of
microeconomics and macroeconomics economics refers to the "big picture" version of which
refers to the observation of small economic units like the effect of micro-market and consumer
decision-making and government regulations on macro. Refers to how interest rates are
determined and that is why the economy of some countries Systems grow faster than others'
economics.
This report incorporates two tasks; 1 and 2. In the principal work; the idea of the law of interest
and supply is clarified with regards to Wal-Mart retail exchange; with the assistance of outline.
In task 2 comparisons of hypotheses of both the contemporary and the cutting edge strategic
approaches in the 21st and twentieth hundreds of years.

TASK 1
1.1 Explain the law of Demand, movement along the same demand curve and
changes in demand curve with its factors
Law of Demand: While other things remain constant, the demand for a service or item increases,
and its demand decrease. When there is a shortage, its demand increases. Therefore, the law of
demand states the opposite relationship between price and quantity demanded. Samuelsson
preferred to call the law of demand, the rule of demand bending down. The type has been
defined as, when the price of a commodity is increased, it is less sought for that article. In other
words, if producers decide to supply more quantity of goods today than yesterday, if other things
remain the same, this greater quantity of goods can be sold at a lower price than yesterday's price
(Stoneman and Bartoloni, 2018).
If other factors influencing demand remain constant, then the inverse between the demand for a
commodity and its price. There is a relationship; a lower quantity of the commodity is purchased
at a higher price and a higher quantity of the commodity at a lower price is purchased.
Movement along the same demand curve:
When the quantity required for a commodity changes due to a change in its price, keeping the
other factors constant, it is known as a change in the quantity requested. It is expressed
graphically as a movement along the same demand curve. Here may be a downward movement
(expansion of demand) or an upward movement (contraction of demand) along the same demand
curve (Fennell and Foster, 2019).
I. Demand expansion is indicated by downward movement from L to N. Required quantity rises
from OQ to OQ1, Due to the price drop from OP to OP1,
II. The contraction in demand is indicated by an upward movement from L to M. The requested
quantity drops from OQ to OQ2 due to the price increase from OP to OP2