Explaining the Law of Demand and Supply in Contemporary Business Economics

CONTEMPORARY
BUSINESS ECONOMICS

TABLE OF CONTENTS
INTRODUCTION.............................................................................3
MAIN BODY....................................................................................3
1.1 Explain the law of Demand, movement along the same demand curve (with the aid of diagram)
and changes in demand curve (with the aid of diagram)...............3
1.2. Explain the law of Supply, movement along the same supply curve (with the aid of diagram) and
changes in supply curve (with the aid of diagram).........................6
CONCLUSION.................................................................................8
References.........................................................................................9

INTRODUCTION
Microeconomics is basically a branch of economics that determines study related to
individual as well as firm’s behavior in making decisions related to allocation of resources (Bai
and et.al., 2019). It is essential to get a great knowledge related to such in order to evaluate the
conditions of economic welfare. This analysis involves factor pricing, product pricing and theory
of welfare. The practices related microeconomic considering law of demand and law of supply
which is the fundamental concept of economics. Thus, this report is going to determine the law
of Demand, movement along the same demand curve as well as changes in demand curve. On
the other hand, law of Supply, movement along the same supply curve and changes in supply
curve.
MAIN BODY
1.1 Explain the law of Demand, movement along the same demand curve (with the aid of
diagram) and changes in demand curve (with the aid of diagram)
Demand is economic determines as the consumer’s desire as well as ability to purchase
goods and services. It is denoted as an underlying force that drives growth of economy and its
expansion. The analysis of this process determines Law of demand, movement as well as
changes in the demand curve. Demand basically depends on requirements of customer that might
have the option to separate between a need and wants, however the opinions of economist’s
determines that they are something very similar. This demand is additionally founded on
capacity to pay. The explanation of such are determine below as:
Law of Demand: The law of demand is a fundamental concept in economics that
determines other factors are being constant whereas quantity and price demand of any service or
good are inversely relate to each other. This law basically determines consumer behaviour when
the prices of any products and services are being changed. In the market, it assuming that other
factors which affecting demand being constant, at the time the price of good rises than it leads to
a fall in the demand. Distinguishing the difference between demand as well as the quantity
requested is critical. The quantity ordered is the amount of items that buyers are able to purchase
at a given point of price. Apart from this, demand illustrates all the possible relationship between