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Demand and Supply in Business Environment

   

Added on  2020-01-28

9 Pages2881 Words196 Views
Business Economics1
Demand and Supply in Business Environment_1
TABLE OF CONTENTSINTRODUCTION................................................................................................................................3MAIN BODY.......................................................................................................................................3Micro and macro economic theory and its impacts.........................................................................3Changes in UK economy through these theories and its impacts....................................................4Expectations from Central Bank of England...................................................................................6CONCLUSION....................................................................................................................................7REFERENCES.....................................................................................................................................82
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INTRODUCTIONBusiness economics comprises of an economic theory and quantitative measures which help inidentifying various important operations and aspects of company. The aspects which can contribute inthe expansion of organization include capital, labour and product markets (Hill, Cronk andWickramasekera, 2013). For conducting the present research, business economy of UK has beenchosen. This report constitutes two theories which are micro and macro economics with their impacts.Furthermore, it also discusses about the changes in UK economy which occur due to implementation ofthese theories. In addition to this, the report also evaluates the expectations from Central Bank ofEngland.MAIN BODYMicro and macro economic theory and its impactMicro economic theory and its impactMicroeconomics can be referred as economic analysis which influences the behaviour ofparticular product, person or a business firm. Microeconomics is a process which helps company insuch a way that it is able to reach at the equilibrium stage. There are various laws and principles whichhelp in analyzing the marginal analysis. One of the theories of microeconomics is “Theory of ProductPricing”. This theory comprises of two concepts that are theory of consumer behaviour and productionand cost theory (Liedholm and Mead, 2013). This theory explains about the demand and supply in thebusiness environment that needs to be assessed by the firm. Along with that, theory evaluates thebusiness environment through product pricing strategies. It also helps in allocating resources for theproduction so that they can maximize their profits as well as minimize cost of the firm. In addition tothis, it also explains different market situations which help in determining the product pricing strategyof products and services.Company uses different pricing strategies to sell their merchandise which will give them higherprofits. This strategy helps in analyzing their present and loyal customers associated with the3
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