Economic For Business - Assignment

Added on - Dec 2020

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Economic ForBusiness
Table of ContentsINTRODUCTION...........................................................................................................................1Main Body.......................................................................................................................................11. Supply & demand diagrams with the relationship among supply, demand & price...............12. What equilibrium is using a supply & demand diagram.........................................................23. Explain what leads to a change in demand.............................................................................34. Explain what leads to changes in supply.................................................................................45. Impact the changes in supply & demand will have on price...................................................66.Supply and demand diagram to illustrate the impact of changes in supply and demand uponprice.............................................................................................................................................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONSupply and demand in economics, shows the relationship between quantity of goods thatproducers are wished to sell, on different price rates as well as quantity that customers want tobuy. Therefore, both terms are considered as two main important terms in economy,which givesopportunities to marketers to understanding the current situation and operational flow of aparticular marketplace. This relationship also shows the development of a market on the basis ofexchange of commodities between producers and buyers are done. This project is going toevaluate the overall supply and demand of a particular commodity at different prices level. Thiswould help in analysing how market operations leads to increase economical activities. Toanalyse the impact of different factors on supply and demand, Polo mint is undertaken which isone of the famous brand of Nestle. This peppermint is first time introduced in UK in 1948,including a tag line as “Mint with a Hole”. Under this assignment, primarily focus is given toevaluate how demand and supply affect price of this Polo Mints at different marketplace.Main Body1. Supply & demand diagrams with the relationship among supply, demand & priceSupply can be defined as the amount of a product that offers in a particular market placewhereas, demand shows the amount of the same that customers willing to purchase at certain rateof price. Thus, both terms are considered as a backbone or most important concepts ofeconomical study, in fundamental manner. Here, price is derived through interaction of supplyand demand where exchange of goods or services occur when both buyers and sellers are agreedon a specific price rate. In this regard, when such type of transaction or exchange of commoditiesoccurs then the agreed price is known as 'equilibrium price'. Here, both sellers and purchasersshow their willingness to exchange an amount of commodity at fixed price rates. In context withPolo Mint, equilibrium price of this product may fluctuate with shift in demand or supply curve.It can be illustrated by considering the following figure. Here, intersection of both curves reflectson which point, quantity of a good supply to an area of marketplace is equal to quantity ofbuyer's demand. Therefore, any changes in this point of inflexion will create different in price ofPolo Mint also (Piergiovanni and Santarelli, 2012).1
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