Contemporary Economic Analysis: Demand, Supply, and Modern Business Practices

BM533 Contemporary
Economic Analysis

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Describe the law of demand, movement along with the demand curve and change in the
demand curve by using the appropriate diagram........................................................................3
1.2 Define the concept of law of supply with its movement in the supply curve and also
change in the supply curve with the use of appropriate curve....................................................6
TASK 2............................................................................................................................................9
Critically evaluate the theories of 20th and 21st century which are related to the modern
business practices of an organisation..........................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Economics is the social science that seeks to describe and analyse the production,
distribution and the consumptive of goods and services so that they can perform the certain task
which contribute to the welfare of an economy of the country. Demand & supply are the two
wheels of economy that is concerned the appropriate flow of goods in the large
marketplace(Martek, 2022). As this is also necessary to have the better approach in the
marketplace by which they can buy the commodities that are affordable to them, backed wit their
sufficient buying capacity. For this report, FamilyMart Company, Ltd is the Japanese
convenience store which are operating as the second largest store chain. They are having
approximately 24, 574 stores in various areas of the globe. This particular report will analyse the
law of demand & its respective movement in the demand curve. Furthermore, this will consider
the law of supply curve and they are facing various change in the given supply curve. Lastly, this
will cover the two emerging theories or concept of 20th and 21st century and also make
comparison of them.
TASK 1
1.1 Describe the law of demand, movement along with the demand curve and variation in the
demand curve by using the correct diagram.
Demand is the economic principle refers to the desire of the buyer so that they can buy
particular goods & services, also they are having the buying capacity to have the particular
commodities. There is no such variation in other factor, rise in the given pries of commodities or
services.
Law of demand:
This is defined as the state in which there is the opposite connection in the given prices &
the particular quantity of products and services in the target market(Devine and Ash, 2022). All
the aspects remain constant, this implied due to change prices of particular products and the
quantity of goods and services in the target area. When the given prices of goods tends to rise as
given in the demand curve from p0 to p1 then its leads to downfall the respective demand of
goods and it reduced from oq0 to oq1 in the target market.

From the given demand curve, it is shown that decrease in the price of products tends to
increase the demand of commodities due to having opposite connection in the demand & prices
of any given commodity. For say, when the demand of products tends to rise from p2 to p3 then
the respective demand decreases from q3 to q2.
There are certain aspects that is influencing the quantity demand of commodities in the
market which are given below:
 Product's price: this says that when the given prices of the goods rises then it directly
impact to decrease the entire demand of commodity in the target market. It is the human
behaviour that consumer always purchase the goods and services at affordable goods in
an cost effective manner.
 Variation in future expectations: This factor defined as the aspects which is leading to
have the consideration in the given marketplace, as there is the direct relationship with
the availability of commodities in the market. In consideration to FamilyMart, when the
people are expecting any change in the certain prices of commodities they fluctuate their
demand accordingly in order to full fill their needs and wants.
 Price of complements:These are the goods which are being used as the conjunction of
another commodity and this is being said that when the prices of complements increases
then its lead to increases the demand of current products in the target market. In