BM533 Contemporary Economic Analysis

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