Contemporary Business Economics Task

Running Head: Economics
0
Contemporary Business Economics
1/16/2020

Economics
1
Contents
Introduction........................................................................................................................2
Task 1................................................................................................................................2
Law of demand...............................................................................................................2
Movement in the demand curve.....................................................................................3
Factors which led to the change in the demand curve..................................................3
Law of supply..................................................................................................................5
Movement in the supply curve.......................................................................................6
Factors which led to the supply in the supply curve.......................................................7
Task 2................................................................................................................................9
Comparing the emerging theories and models of the 21 century with the 20 century. .9
Conclusion.......................................................................................................................11
References.......................................................................................................................12

Economics
2
Introduction
In microeconomics, it is necessary to consider the concepts and principles which are
essential for the retail business. This report includes an analysis of the law of demand
and the law of supply. The evaluation of alternative theories of economics is discussed
which are essential for the business (Vigersky, et al., 2014). The movement of the
supply and demand curve will be discussed which are affected because of the various
factors. Emerging philosophies and models of the 20th and 21st century will be discussed
which are related to the practices of modern business.
Task 1
Law of demand
It can be stated as the inverse connection among the price value and the amount
demanded the goods and services. As per this law, if the price of any product enhanced
in the market then quantity demanded that particular product will fall but the other
factors being the constant.
Example: The items of the grocery are purchased by the consumer more when there
are prices are lower. Similarly, when the prices of the grocery increase, the demand for
food decreases (Thimmapuram and Kim, 2013).

Economics
3
Source: theintactone.com
Movement in the demand curve
It will occur in accordance with the original demand relationship, the amount demanded
good variations when there is the alteration in the price value of the goods. In short, it
can be said that the movement can happen when there is a variation in the quantity
demanded of the good and the only reason is the alteration in the prices of the goods.
It occurs due to the change in the prices of the products. It is assumed that consumers
wish to buy more at the same prices when there is a shift in demand (Garcia-Heller, et
al., 2016). Due to the fluctuation in the prices of the goods that does not mean that
demand curves shift from one place to another but it means that the demand curve has
moved from one point to another.
Example: The demand arc will change when there is a rise in the price of the oranges
from $ 15 to $20 and the quantity demanded of the oranges will fall from 70 to 100,
which means the demand curve will shift from one point to another.