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Economic Demand and Supply Assignment

   

Added on  2020-10-05

11 Pages2972 Words80 Views
Economic for BusinessDemand and Supply

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Supply and demand analysis to determine the factor in ascertaining price of Polo Mint in UK. ......................................................................................................................................................1CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONIn the real world, the concept of business economics is the field of applied economics thatincludes market related, economical, environmental, financial problems and their solution by anorganisation (Assous, Bruno and Legrand, 2014). The basic two elements in economy forbusiness is demand and supply that support in proper running and attaining suitable profit forcompany. Supply basically means the total availability of goods in market offered by producerand on the other side demand is the actual needs of goods by customer to fulfil their needs. Theoverall interest of seller and purchaser support in identifying entire demand and supply forvarious product at decent prices. In this report, polo mint is selected and the main focus of report is on elements that leadsto modification in supply and demand and influence on price are discussed in this report. MAIN BODYSupply and demand analysis to determine the factor in ascertaining price of Polo Mint in UK. In economies, the most important fundamental concepts that are known as backbone foreconomy are supply and demands. In general term, demand is defined as the total quantity ofspecific goods produced by companies which are needed by customer on a specific rate. Thus itis stated that price and quantity demanded are help to reflect the demand relationship. On theother side supply of good means the total quantity of goods offered by companies for sale atspecific time in particular market. In simple term, the good supplied by a producer is thewillingness of them to earn a specific price in certain time frame. Economic is defined as theprocess of analysing production, consumption and distribution of goods and services that help toraise the living standard of people. It is very curial for a manager of companies to analyse thecurrent changes and trends in economy so accurate decision are made to meet the demand andsupply of specific goods (Zervas, Proserpio and Byers, 2017). Demand is the rate at which customer are desire to buy a good. It mainly holds twosignificant factors such as ability that is related to buy a good at decent rate and taste to consumemeans desire for a product. When prices are lowered, demand are higher and if price are veryhigher for a good than demand will decrease because customer will to buy product but theirability are limited to acquire specific goods. The below Figure display a generalized relationship1

between the price of a good and the quantity which consumers are willing to purchase in a giventime period. Supply is defined as the ability and willingness of a manufacture to supply producedgoods that help to ascertain seller actions. It is observed that at higher price supplier providemore quantity of product to buyer. This support them to maintain a decent profit above theiroverall cost of production that further helpful in expanding business in short time frame. In casewhen stock level in lower than the the actual needed stock than producer use to raise supply andprice for their product (Azevedo and Leshno, 2016). Therefore in short time sudden increment insupply increase the cost of production that further increase the overall price for customer. Thebelow mention curve shows upward movement in supply curve because for producing eachadditional unit of output require more cost that directly increase price. 2

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