Contemporary Business Management

CONTEMPORARY
BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
TASK 1.......................................................................................................................................................4
Explaining the Law Of Demand (LOD) with movement along the demand curve and changes in same 4
Explaining the law of supply with diagram of movement along and change in supply curve..................7
TASK 2.......................................................................................................................................................9
Comparing and contrasting the 21st and 20th century economics theories and model and relating it to
modern practices......................................................................................................................................9
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Business management is process of making strategic decisions regarding various
functions such as production, supply to derive significant positive impact on company. In
currents scenario to is essential for organization to have efficient business management to
achieve competitive advantages in order to cope up with changing market environment. The
current report will give emphasis on law of demand & supply. Present case study will reflect
diagrams of movement along as well shift of curves of respective theories to derive deep
knowledge. It will compare & contrast emerging theories by relating with modern business
activities.
MAIN BODY
TASK 1
Explaining the Law Of Demand (LOD) with movement along the demand curve and changes in
same
It is a fundamental principle which reflects the inverse relationship between the quantity
and price. Law of demand is micro economics concept that helps to understand change in
demand due to variation in prices of products or services. According to this particular law other
factors being constant and price & quantity are inversely related that helps to take varied from
business decisions on the basis of consumer changing behavior (Mazurek, García and Rico,
2019). If the value of goods are increased it tend to result is low demanded quantity and vice
versa. Demand curve denotes variation in both value and amount demanded from one point to
another. Organization largely focus on it make strategic decision regarding charge fixation, level
of production, etc so that growth in industry with appropriate knowledge cab be derived. There
are various types of assumptions that LOD has considered for obtaining the desirable level of
results. This concept can be understood deeply by following diagrams
Movement along demand curve can be understood by emphasizing on two types of
directional change in quantity due to price. The directional movement can be either upward or
descending which aids in identifying that its expansion or contraction of amount demanded.

Expansion is basically rises in amount demanded because of fall in worth. This results in
downward movement along the same required curve (Franks and Bryant, 2017). In addition to
this, it is widely referred as extension in demand that ultimately provides opportunity to sale
more commodities. With help of below illustrated diagram it can be deeply understood.
Expansion in demand curve can be presented by downward directional movement which
from one point to another. it outcome due to there is reduction in price of particular commodity
or service and other factors remaining constant that is refers as ceteris paribus. Other factors are
here income of consumers, cost of substitute & complements, seasonal, change in taste &
preferences, advertising, etc. Law of demand expects these elements to remain constant which is
biggest assumption of this. It leads to allow movement on the same demand arc. For diagram one
it can be understood that movement from point A to B on demand curve d1.it happens as price
fall from P0 to P1 which resulted in Q0 to Q1. This implies due to variation occur in fall worth as
it can be interpreted that X & Y axis reflects quantity demanded and Price respectively.
Diagram two shows contraction in ordered goods that is due to fall in amount demanded
because of rise in price. It is reflection of changing in consumer behavior due to increase in value
of goods which tend them to buy in lesser amount to fulfill their particular need. With respect to