Economics for Business Assignment - (Polo Mint)

Added on - 06 Jan 2021

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Economics for Business
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................1CONCLUSION...............................................................................................................................9REFERENCE................................................................................................................................10
INTRODUCTIONEconomics for business clearly explain the principles within organisational context. It isalso called managerial economics because it include the various methodology or theories in theirbusiness (Assous, Bruno and Legrand, 2014). It will help the business to choose betteralternatives among the various options and help the organisation to meet with their needs &demands of the business. Economics help to determined the government, society, households &individuals allocated resources. Polo Mint is the brand product of Breath Mint and UK basedcompany. It is the first peppermint manufacturing company which established in 1948. In thisreport, topics are going to be covered is analysis of demand & supply and the main factors whichdetermined the price of Polo Mint.MAIN BODYIn the economic business environment, comparative statics plays very important role toidentify different economy and the changes before & after. It will compare the two equilibriumpoints with the help of statics analysis. In the other words, change in the demand & supply willbe done due to the factors. Comparison will be done on the basis of diagram because it willprovide the clear picture of change in demand & supply of Polo Mint. For example: - Demandof Mind product is 50 pc and supply also in same quantity. Price of the product is £5 and supposedemand will increase by 10 pc but supply was still same. So the price of the product will beincrease by £1 and the currents price is £6 of each product. Basically the comparison among thetwo equilibrium price is called comparative economics statics. It involve the comparativeanalysis of new equilibrium point with the original one and it will happen because of somevariable changes in the business(Azevedo and Leshno, 2016).According to Baumol, static supply & demand analysis will show the equilibriumchanges before and after change in variables on the basis required time. Equilibrium point is thatpoint where price of product in the market develop the equal demand as well as supply ofproduct & services in the market for the consumers. With the help of equilibrium point PoloMints can develop strategies according to the requirement. Further explanation of the will beshown in the below figure and it will help for the better analysis.1
This diagram will clearly show the shift of E (Equilibrium point) from E to E1and in theabove discussion demand of the product will increase by 10 pc which will clearly shown in thediagram. Where D (Demand) will shift to the right side D1so because of that Equilibrium pointalso shift and it will provide effective comparison. It also applied Law of supply & demand inthe Polo Mint for the identification of resources.With the help of theoretical concept such as demand & supply analyst or researchermeasure the factors which determined the price of Polo Mint in the UK. Demand & supply ofPolo product by an individual will affect the business. There are various factors which affect theboth market such as microeconomics & macroeconomics level and force them to shift accordingto the variable changes. It include the average income of an individual, price of product, demandor taste & preference according to consumers which will change the entire curve or shift thedemand from right to left or left to right(Bohi, 2013).From the above diagram, demand will shift toward right due to increase product demandbut supply still the same. Diagram will clearly show the that, demand of Polo product willincrease the price (P) as well as quantity (M) which is mentioned. Due to this reason, equilibriumpoint shift from E to E1.Biggest reason to change in the supply & demand curve is the product price, averageincome, taste & preference, future demand or price, related goods etc. These factors will changethe demand of Polo Mint and it will further affect the demand which already shown in he abovedigram.2
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