Demand and Supply Analysis for Tesco: Law of Demand, Law of Supply, and Factors Affecting Them

This report analyzes the law of demand and supply for Tesco's corned beef product, including factors affecting them and their shifts. It also compares traditional and contemporary economic theories, including neoclassical, Keynesian, and Marx's economic theory.

Demand and supply

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Inform the law of demand, movement along the same demand curve and changes in
demand curve with proper diagrams ....................................................................................3
1.2 Explain Law of supply, shift along with the invariant & various factors which is having
change supply curve with the help of appropriate curve.................................................................6
TASK 2 ...........................................................................................................................................9
Comparison and opposition of emerging rising and models in 21st century contemporary
economics with those of the 20th century, and relate both of these to modern business
practices. ................................................................................................................................9
Comparison and Contrast of Traditional and Contemporary Economics Theories.............10
REFERENCES..............................................................................................................................11

INTRODUCTION
Economics is the study of informing what is missing in company and how to use the
origin in a way so that they can be helpful for the company. It is included in making products ,
growing and social welfare all over the time period . It is the constructive view of every
economic scheme or theory used in the company for going with flow in the market. In the
respective report of Tesco the specific product which is selected is corned beef there will be
give-and-take on law of demand of beef, movement with the curve with suitable curve and law
of supply, movement in supply curve along with the appropriate diagram representation (Yuan,
X and et. al., 2022). Tesco is a British public limited organisation which deals in supermarket,
hypermarket and superstores , it was founded by Jack Cohen in 1913 at Hackney, London ,
England UK and the main head office is in Welwyn garden city, Hertfordshire UK,it serves in
United kingdom, Ireland,Hungary,Czech republic and Slovakia and it is retailing industry. It has
also been listed on the London stock exchange
Task 1
1.1 Inform the law of demand, movement along the same demand curve and changes in demand
curve with proper diagrams
Demand in political economy can be explained as the disposition of any user to adopt or buy any
goods but at the same time can be capable and prepared to pay for it at different price plane in a
given time period. It is the tendency of customer to buy products and services to give a price for
a particular product. With keeping all other factors constant if there will be a increase in prices of
products, the demand for the corned beef will fall down as consumer will not buy the beef at
advanced prices because it the capability to spend money it shows that how much a consumer
can spend on a particular product according to his financial gain.
Law of demand explains the reverse relation between price and demand , for expansion it can be
said that demand modifies with increase in price and decrease in price. In context with Tesco it
is a basic concept that when prices will rise there will be decline in demand and when prices will
fall there will be increase in demand (Tolazzi, M., 2027) . It merely states that the consumer
behaviour of demand and price of corned beef.

In the given curve we can clearly observe that when the price of the good rises from price p3 to
p2, then the measure demand for the same product falls from Q3 to Q2 to Q3 accordingly.
Factors affecting demand shift are as follows:
1) Taste and liking: It says that when user will like corned beef he will be inclined to buy the
beef and it will be easy for him to do so as he is already in favour of the choice of product but if
customer does not like commodity the demand will drop-off as he will not buy that particular
product because he is not in favour of that good(Shendryk, & et. al., 2022).
2) Income of consumer:It explains that if the income of consumer is more then he will tend to
purchase more goods and services so the demand will increase for the goods and if the income of
user is less then he will not buy corned beef so the demand will decline , as the consumer is only
able to buy beef when he is that position to buy but if he is not in the situation with good income
he can't buy the goods and services.
3)Change in the price of related goods: when the price of a product that count a good falls,
then the quality demanded of one rises and the need for different product rises(Peng, L and et.
al., 2022). The complement products are substitutes or subsidiary replacement for a product .
Like in Tesco corned beef has so many substitutes like meat, fish and other non vegetarian items
which consumer can replace corned beef with and then they will not suffer the loss because they
can easily use the substitutes too.

4) Number of consumer in the market:An industry need is non heritable by the amount of
many single petition in the market at several level of monetary value. When the user change onto
any other secondary products because of the price variation in the goods and services, that will
result in many number of customer for the good masses of humans chose by giving up
another(Pak, H., 2022). With context to Tesco, if people demand more of beef because of the
prices of related goods that are meat and fishes or financial gain or some other, it will effect the
rise in the amount of customer and the demand curve and will move accordingly.
Also, launching its commodities in the new market where the customer demand for beef is
already high will also assist them to increase the no. of users in the market.
5) Consumer expectations: There are times when consumer thinks of future crisis and in this
report of Tesco, where we are discussing on corned beef, it is packed meat of cow which is
packed with salt solution and is easy to store for coming time so with rise in different related
goods consumer will tend to buy the corned beef in bulk because they cam even store it for the
future
6) Price of product: It explains that with increase in price of product the demand of the peculiar
product will decrease and if the prices goes down the demand fort hat product will rise(Nyika,
J.M., 2022). So the consumer will always buy the goods when the price is fallen down and do not
buy the product with high prices as the purchaser will always loves to but the product when it is
affordable .
Change in demand curve:
This is defined as the alteration in the whole demand curve because of the alteration in the some
components which involves the cost of subsidiary products, price of complementary goods, taste
and liking of the consumer and the coming days the expectation of the buyer. In this situation,
the demand curve will shift to the left or right.

In the given curve, the demand shift in the given curve to the right and can be shift to the left.
When the demand of the commodities increases then the demand curve then the curve will shift
to the right(Lin, J and et. al., 2022). On other side, fall in the demand of the given goods relies in
shift in the curve to the left,as per the given diagram, rise in the demand of the given goods then
the demand curve shift from d0 to d2 and vice-versa.
1.2 Explain Law of supply, shift along with the invariant & various factors which is having
change supply curve with the help of appropriate curve.
Supply is a fundamental idea which defines the total amount of particular goods
which are used by customers. It can be said that the amount addressable is related with specific
price of the product. It can be produced products, labour time period, raw material required or
any essential factors.
Law of supply
It can be classified that with keeping all the factors same, the price of products will rise &
the amount of products that supplier offering will also rise (Lee and et, al., 2022). On
overflowing prices producer will tend to supply even more amount of goods, it is positive
relationship between quantity supplied and price

As per given diagram representation there is a straightforward relation between price and
quantity supplied so when price is at p3 quantity is on q3 and after rise in price which is
(p3-p2) there will be a rightward shift of (q3-q2) and this continues when (p2-p3) there
will be a shift (q2-q1)
Factors affecting law of supply of corned beef
 Price of commodity supplied: the main factor which affects the supply is price because
price is the main element on which supply will lie on. It is because at high prices there
are high chances of gaining profits. It generates Tesco to offer more attractive offering for
increasing sales in market (Kafouros and et. al., 2022). Supply is a function of price and it
can be expressed as S=f(P), this depicts the straight relation between price and supply and
is called “law of supply”
 Natural conditions: There are times when people don't consider non veg food like a
necessity it is because of some natural conditions like heavy humidity and rise in
temperature (Jiang and et. al., 2022). In this situation people will not go for meat and
beefs because it contains some ingredients which are not in favour of consumer so
according to climate there will be changes in supply.
 Prices according with quality: Every product has different and modified use according
to the need of consumer but supply also relies on price of the product but rise in price of
goods also improves their quality and make them more profitable then suppliers are in a
position to supply that goods in bulk and automatically the supply of that product will

increase rapidly. As a result the Tesco curve will move its precious resources from
manufacturing of given item to manufacturer of some different product
 The state of technology: It is the main element of supply. A better and latest application
rises the manufacturing of product(Hung, K. and Zhang, Y.R., 2022). For example the
manufacturing of corned beef and the best quality of meat increases the supply of beef in
the market . This in future leads to prices increased and supply being the same
Change in supply
It means to shift to left or right , fundamentally a alteration in supply is an gain or fall in then
quantity provided that is alternative with a high & low supply price. Happening in supply is not
to be baffled with a modification in the quantity supplied.
In the given presentation there is a shift to left which is viewing high cost of fabrication , higher
income betterment and fall in ratio and the supply curve will shift to right when supply is higher
but prices has stays constant.

TASK 2
Comparison and opposition of emerging rising and models in 21st century contemporary
economics with those of the 20th century, and relate both of these to modern business
practices.
There are so many theories propounded by well known and expert economist in 20th and 21st
century, some of the concepts are also defined with full details and briefing and there are two
traditional theories which are discussed below in the respective report of Tesco :
Neoclassical theory: It is the theory of economics which classified how fast economic growth
rate consequence in aggregation of three important forces which are labour, capital, and
technology. The federal agency of economic investigation names Robert solow and Trevor swan
by having the credit of processing and launching the theory for long last run of economic
maturation in 1956, working of this theory is explained in a elaborative way and it states that
short term balance results from changing measures of labour and capital in the manufacturing
purpose. The theory also says that technological change has a big role on economy of Tesco and
they cant survive without technological factors(Huang and et. al., 2022). This theory also
explains that with increasing employment income will increase and then automatically
purchasing power of user will rise but income will not rise to the great extent because there is a
factor which is saving factor because the user will tend to save the money for the future.
this also outlines that the theory elucidate that short-lived equilibrium is a little different in
comparison with long lived equilibrium which do not need these three factors.
Keynesian theory: It is the theory which explains that political party should raise the need to
encourage development. Keynesian consider that customer demand is original force in an
economy . This theory assists contraction of fiscal policy. The important tools are amount that
government is paying for the structure, unemployment welfare, and education. A limitation is
that exaggerating Keynesian policies rises economic process. He also described his premises in
his writing “The general theory of employment, interest, and money.” which was publicized in
February 1936, it was radical . Keynes explained the deficit outlay during the shrinking stage of
business interval. President Bush's spending in 2006 and 2007 raised the financial obligation, it
also created a boom in market which led the firms to financial crisis. President Trump raised debt
during steady economic development.

There is a contemporary business economic theory which is discussed in this report of Tesco:
Marx's Economic Theory: It is the best theory for profit as explained in the above
discussion,in this it is explanation of capitalist production, and main question arises socialism.
Thought economic theories render nearly no theory of profit at all, and there is no comparison of
this theory with the other theories and Marx's is the most powerful among all in giving the theory
of profit , in other words mainstream economics tries to provide a theory of capitalism without a
theory of profit(Ho, S.C. and Chuah, K.B., 2022). It is stressful to have a theory of the
Christianity church without the Roman Catholic Pope. Marx’s theory, by conspicuous contrast,
give a logically strapping theory of profit with very sensational informative power. Marx’s
theory of profit is of class that profit is made by the excess number of employees. That is, it only
takes a portion of the employed days for workers to make value equal to their rewards (the
“necessary labour” portion of the working day). It travel from this theory that capitalistic
inherently and inescapably an unsporting and consumptive economic system. Capitalism cannot
survive without earnings, and profit cannot exist without the utilization of workers. No amount
of reforms within capitalism can change this basic primal truth. If we want a just and equitable
economic system in Tesco without exploitation, then this theory must be taken into consideration
and Tesco must change the economic system from capitalism to socialism .
Comparison and Contrast of Traditional and Contemporary Economics Theories
Neo- classical theory focus on reference point which is that a consumer will only take the
amount of the goods keeping in head his original income and if the outgo of the user rises then
the ingestion will mechanically rise which also justify the balance element in the market. In
modern undertaking, organization can use this theory by repairing the prices of their goods at
that rate where both customer and vendor are set to do dealings and that will also assist increase
the legal power.
Keynesian theory explains the labour occupation and defines that when employee ratio
increases , the real financial gain and ingestion will also rise. In the report of Tesco concern is
that it can utilise the resources for the betterment of company and by employing more and more
employees to work for them and complete the tasks efficiently and by this the income of
organisation will automatically increase and the company will go further in terms of competition
in the market.

Mark's economic theory explains that the appraisal of the goods should only count on the
employed hours labours have invested at the time of manufacture. In conception to recent times,
Pepsi should employee more workers and should collect the values of the goods , the working
period of workers which accordingly raise the government income.
CONCLUSION
In this respective report of Tesco it has been concluded that the description of the company and
the history of Tesco like when it was founded law of demand and how factors like price,
preference and availability affects the law of demand and on the other hand we have studies
supply, law supply and the factors which are state of technology , price of commodity and
natural conditions influences law of supply to change also the suitable curve for demand and
supply has been lighted up with explanation. And lastly there has also been the study of
traditional theories which are Keynesian and neoclassical theory and the contemporary theory
which was Marx's economic theory and in last we contrasted the three theories which are being
used in Tesco.
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