BM533 Contemporary Economic Analysis

This report analyzes the concept of demand and supply and its related law with the change in the demand and supply in the target market. It covers the determinants of demand & supply. Lastly, this will cover the emerging theories of 20th & 21st century and the modern business practices in the business. The report is based on the analysis of FamilyMart, a Japanese convenience store.

BM533 Contemporary
Economic Analysis

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Analyze the law of demand, movement along the demand curve and variation in the
demand curve by using appropriate diagram..............................................................................3
1.2 Explain the law of supply, movement along the supply curve and also access variation in
supply curve with the use of diagram.........................................................................................6
TASK 2............................................................................................................................................9
Perform the comparative analysis in leading theories & models in 21st century contemporary
economics and 20th century, and relate both of these to advance practices of venture..............9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Economics is the social science which is concern to understand and describe the
production, distribution & consumption of wealth. In today's time, when the organisation is not
having the staff of economists then they lacks in the ineffective implementation of the market
trends and the strategies which leads to have the overall consideration in the target
market(Martek, 2022). This respective report is based on the FamilyMart, It is the Japanese
convenience store and headquarter is in Toshima, Tokyo and it is founded in the year of 1973 by
Seibu Retailing Group. Furthermore, this report will analyse the concept of demand and supply
and its related law with the change in the demand and supply in the target market. This also
cover the determinants of demand & supply. Lastly, this will cover the emerging theories of 20th
& 21st century and the modern business practices in the business.
TASK 1
1.1 Analyze the law of demand, movement along the demand curve & variation in the demand
curve by using appropriate diagram.
Demand is the concept which determine the choices and the choice and wants of the
people so that they can buy the specific commodities & services and they are having the
purchasing power to buy the products and commodities from the large market.
Law of Demand:
According to this, the demand of commodities and the prices of thee products are having
the inverse relationship which means that rise in the prices of commodities tends to fall the entire
demand of offerings in the target market(Shapiro, 2018). For say, let take the consideration of
FamilyMart, when the respective price of goods tends to rise then the demand for the same
goods fall-down as it is clear that consumer always look for the affordable goods in the target
market. It is being known that large group of people tends to have the overall consideration in the
target market and many more.

It is being derived from the above demand curve that, this is loping downward due to the
reciprocity in the given prices and the demand of commodity in the target market. AS per the
diagram, when the prices of goods tends to rise from p3 to p2 then the demand for the
commodities offered by FamilyMart reduces from q2 to q1 and vice-versa.
Enlist the various aspects which are impacting the entire demand of commodities are
illustrate below:
 Product's price: when the prices of the particular products tends to rise due to change in
the certain aspects then with the point of view of buyers, the demand less due to the
higher prices and this leads to reduce the entire demand of goods and services in the
target market.
 Price of substitutes goods: There are certain goods that can be overtake by the other
goods due to their same satisfaction level in the market and they are having the major
consideration in the market that they can working with the similar satisfaction in the
target place & this also leads to explains the entire consideration in the target marketplace
(Devine and Ash, 2022).
 Price of compliments offerings: These are the products that can not be solely used as
they are working as the support part of the final product. It is being known that when the

prices of such commodities increases then the demand for the other goods also tends to
fall-down as it leads to increase the entire prices of the commodity.
 Income level of consumer: This basically says that as the income of the commodity
increases, demand for the certain commodities tends to increase in the target
market(Achiume and Lake, 2022). On other hand, fall-down in the prices of
commodities tends to move the consumer to buy the inferior goods as they do not have
the sufficient buying capacity to purchase.
 Taste & preferences of buyer: As the person is having the changing mind set and their
preferences as per their liking's. When taking the consideration of FamilyMart, positive
response of the buyer tends to increase the demand of the products and services.
 Variation in future expectations: There are certain condition in which the future needs
of the people doe not fulfilled but this leads to change the demand of commodities and
services in the concerned market. In relation to FamilyMart, when the individual are
getting such variation in the given prices of commodity in the coming future then the
demand for items tends to rise in the given concerned market.
Change in demand curve:
It is called as the shift in the overall demand curve due to the variation in the given prices
of commodities in the target market. These are the factors which involve the change in the
income, consumer preferences their taste and choices. In all these aspects, the demand curve will
move to the right or left in the target market.

Variation is the overall demand curve can be occur due to the varation in the given prices
of goods and related factors which leads to impact the entire functionality of the business.
Rightward shift in the demand curve tends shows the decrease in the prices which leads to buy
more to the people. In relation to FamilyMart, as the initial demand is d0 then the entire demand
tends to shift to d1 or d2, it completely depends upon the change in the various factors which is
impacting the entire demand of goods in the target market.
1.2 Explain the law of supply, movement along the supply curve and also access variation in
supply curve with the use of appropriate curve..
Supply is the concept that is related to the total amount of available good and services in
the target market. Or can say that these are the total available amount of products and services at
the given prices.
Law of supply:
This is being said that the prices of the particular goods and services has the direct
relationship with the supply as the prices of goods increases then the supply of commodities
tends to increase in the concerned market which aim to generate more revenue in the target
market(Opeskin, 2021). Whereas, as the given prices of commodities leads to fall-down in the
concern market then the respective supply of goods also decreases in the target market. In

relation to FamilyMart, When the respective price of goods and services leads to rise then the
respective supply of commodity and services also leads to rise and vice-versa.
It can be said from the above supply curve that, it is upward slopping due to the positive
relationship in the respective supply of goods. When the prices of the commodity tends to rise
then the supply for the same also increases and vice-versa. In context to FamilyMart, when the
prices of the commodity increases from p3-p2 then the supply for the same also increases from
q3-q2 in the target market.
Certain aspects which is influencing the entire demand of goods in the concerned target
market are given below:
 Cost of production: These are the aspect which is impacting the entire supply of
commodities in the concerned market. price of the goods influence the overall supply of
goods in the market. When the organisation is having effective sufficient raw material
then they leads to produce more and rise the overall supply of commodities and services
in the target market. In relation to FamilyMart, when they are having the required raw
material to their company then it leads to offer more goods to the buyer and they can
generate more revenue and profitability and revenue in the given marketplace.
 State of technology: This is being called that the technology plays the significant role in
enhancing the overall supply of goods in the target market(Reisman, 2018). In respect to
FamilyMart, when they are using the upgraded version of technology in its production
then it leads to impact the entire supply of commodity in the current market.

 Subsidies offered by government: These are the benefits which is being offered by the
government and this leads to increase the overall subsidies by which the cost of goods
can be reduces in the market and they are given the better consideration in the respective
market. For example, reduction in the overall taxation of Japan can leads to rise the
overall supply of commodity in the concerned market.
 Weather: It is the factor that is having the major aspects in the target market & these are
the factors which are not controlled by the company as they are majorly impacting the
entire working of the company. FamilyMart is conducting its business in food retailing
and bad weather can impact the overall supply of goods in the given area.
 Objectives of company: There are firms that are working for generating more revenue
and there are companies which are working for the social welfare of the business. They
try to influence the overall supply of goods in the target market as they are having the
overall consideration to the market place.
 More firms: There are various organisation which are conducting its business in the
target market(Schumpeter and Heilbroner, 2022). In relation to FamilyMart, increases in
the number of rivals can leads to lower-down the overall sale of the company and this
also leads to impact the entire profitability of the business as well.
Change in Supply Curve:
This is refereed as the shift in the overall supply curve due to the major variation in the
certain factors which involves the production cost, government subsidies, taxes and state of
technology. It is stated that the when the supply curve move from s0to s1 then it shows the
increase in the overall supply of commodity in the target market. Whereas, the supply curve shift
to the left from s0to s2, it shows the reduction in the supply.

It is being illustrate from the above supply curve that the increase in the prices of goods
tends to rise the overall supply of commodity in the concerned market. In respect to FamilyMart,
the supply curve will shift from s0 to s1 showing the rise in the supply of commodity in the
target market which is leading to have the huge growth of the business in the concerned
marketplace.
TASK 2
Perform the comparative analysis in leading theories & models in 21st century contemporary
economics and 20th century, & connect these to advance practices of venture.
Contemporary economics is the research and the theoretical aspect of economic,
accounting and management which is having the major importance by which they can develop
the discipline. When taking the consideration of FamilyMart, they basically overlook the entire
functionality and the productivity as it is the major concern to the target market that are showing
in the 20th and 21st century which are illustrated below:
Traditional Economic Theories
Neoclassical theory: Respective theory that is being formed and launched by the Carl
Menger and Leon walras. In this, the author is basically focuses on the demand & supply which
are the major factors needs to ensures the better flow of offerings within the economy and also
ensures the effective use of commodities in the given market which help the company to set their

good brand position in the target market. In context to FamilyMart, changing trends of the people
impacting the entire sale of the company and this is the major variation in the concerned
company as all the consumption of the people is based on the entire business model of the
company.
Keynesian Economics theory: This respective theory is related to the personnel that are
operating their business I the respective market and this is completely based on the wages and
the prices of the commodity which are fixed and the employees are dedicated to the work and
emphasis by which they can rightly ensures the appropriate working of the employees by which
an organisation can ensures the higher profitability in the target market(Langevoort, 2022). It is
basically connected to the macroeconomics & also includes the reduction in relation to the
overall consumption and the buying behaviour of the people. Other aspects is related to the major
consideration in the target market and the given prices and the salary or the wages of the
personnel is having major consideration which shows the overall profitability of an organisation.
Contemporary Economic Theories
Behavioural theory: It is the theory that is being known by the Richard Thaler & they
are having the effective consideration & the combination of psychology & economic
environment so that they can ensure the reason for the effective behaviour by the individual that
are sustaining in the given world. In content to FamilyMart, they are rightly ensures the better
working so that they can rightly oversees the entire working of the company. In context to
FamilyMart, they ensures the better understand and the behaviour of the employees as they are
having the main consideration in the target market which ensures the entire working of the
company which is based and introduced by the people who is having the global pandemic. It is
the respective theory which is generally based and introduced by the people who is having the
main aim of generating more revenue and this leads to ensure the higher cost of the company. It
is the major aspects which is ensuring the better working in the given job role.
Nudge theory: This is the economical concept which is having the better consideration
and the indirect suggestion to the employees by which they can meet out the behaviour of the
people for having the good decision-making(Feng and et. al., 2021). When taking the
consideration of FamilyMart, this particular analyse helps the business to understand the
business environment so that they can use the automatic cognitive process for the better

decisions. At the time of global pandemic, they can use the better theories by which they can
effectively used the people as their major concern its financial consideration.
CONCLUSION
From the given report, it is being stated that demand & supply are the major components
which ensures the effective flow of commodities and services within the economy. Certain
aspects that are influencing the entire demand of goods in the market are the respective price of
the goods, income level of buyer, choices and their preferences and their future expectations.
Moreover, Quantity demand and the given prices of the commodity are having inverse
relationship due to which the demand curve slop downward. In relation to supply, there is the
direct connection in the price and the quantity demand in the target market. There are certain
aspects which impact the supply of commodities are cost of production, technology used, type of
company, number of rivals. Moreover, neoclassical theory, Keynesian economics theory,
behavioural theory and the nudge theory which is being used by an organisation by which they
can ensure the better enhancement to the entire economy.

REFERENCES
Books and Journals
Feng, G. and et. al., 2021, March. Research on the Demand Distribution of Aviation Equipment
Maintenance Spare Parts. In 2021 IEEE 6th International Conference on Big Data
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Langevoort, D.C., 2022. Global Behavioral Compliance. In Corporate Compliance on a Global
Scale (pp. 217-236). Springer, Cham.
Schumpeter, J. and Heilbroner, R., 2022. The Creative Destruction of Socialism. The Making of
Modern Economics: The Lives and Ideas of the Great Thinkers, p.421.
Reisman, D., 2018. Demand Management. In James Edward Meade (pp. 147-165). Palgrave
Macmillan, Cham.
Opeskin, B., 2021. Rationing Justice: Tempering Demand for Courts in the Managerialist
State. University of New South Wales Law Journal, Forthcoming.
Achiume, E.T. and Lake, D., 2022. International Convention on the Elimination of All Forms of
Racial Discrimination (ICERD). In Elgar Encyclopedia of Human Rights. Edward Elgar
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Martek, I., 2022. International Construction Management: How the Global Industry Reshapes
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Shapiro, D.B., 2018. Payment to egg donors is the best way to ensure supply meets demand. Best
Practice & Research Clinical Obstetrics & Gynaecology, 53, pp.73-84.
Jianchao, R.E.N. and Qing, H.A.N., 2018. Reason Analysis for Difference Between Consumer
Food Safety Risk Perception and Real Situation: From Information Supply and Demand
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