Economics For a Business Assignment - Polo Mint
Added on 2020-10-22
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Economics For Business
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1CONCLUSION ...............................................................................................................................8REFERENCE ..................................................................................................................................9
INTRODUCTIONIn business term, the economic of business is also know as managerial economic thatease the process of decision making of choosing the best alternatives from the available optionthat further help to increase the level of profitability (Assous, Bruno and Legrand, 2014). Ingeneral, it is a stream of applied economic that focuses on the organisational, financial,environmental problems that are mainly faced by corporations. In this project to betterunderstand the theories of economic for a business polo mint has been selected. Respectivecompany use to manufacture peppermint product for Breath Mint and has it headquarter inLondon, UK. In this project report, analysis of supply and demand to determine and understand theoperation of market, identify of various important factors that help company to set the price ofdifferent product has been discussed. MAIN BODYIn today's business environment, economic is the entire examine of manufacture,distribution and consumption of useful product and services as per the consideration of peopleliving in that particular economy. Further it can be separated into two major category of studythat is microeconomics that deals with decision making and market of a business firm orcustomer and macroeconomics which shows the aggregate quantity of a particular economy suchas national income and overall national production. Thus it is the responsibility of the managerialof a firm to better determine the changes in economy that make meaningful decision.Comparative statics help large and small companies to determine the various sort of economyand the sudden changes that are happen at a specific period of time. This statics support tocompare equilibrium of demand and supply on the dependence of a valid figures and structure asit will deliver more authentic and appropriate result for the actual changes in overall supply anddemand of Polo Mint. Demand & supply of product are mainly depended upon types of marketcompany operate and nature of business. There are mainly two type of market such as factormarket that is related to the purchase and sales of commodity produced by a company and goodmarket that is linked with complete production of particular commodity (Azevedo and Leshno,2016). 1
In economic term demand is the actual will of an individual and their ability to buy aparticular amount of good or services in order to fulfil their needs and desire at a specific price.On the other side supply is the desire of seller to provide a specific quantity of product andservices to a wide range of customer on an agreed price in order to maintain a sufficient profit. Ithas been observed that with the support of demand and supply model exact price and quantitylisted are ascertained and the exterior influences impact the values of those variables. Thedemand curve capture the consumer behaviour in the demand function which displays thehighest price customer are desired to pay for every quantity. This curve also shows the highestquantity of particular product customer is willing to buy at every price. Similarly the supplycurve is used to capture the merchant behaviour within supply function that shows the lowestprice distributor are desired to accept for all product and the maximum quantity which a sellerare willing to offer different customer at all prices (Bohi, 2013). For illustration, demand forMint product in a specific market is 70 pcs and overall supply are equal a particular time frame.In case, if price product is £5 and actual quantity for demand increased by 10 pcs and supplyremain unchanged. Due to this change the price Mint product will increased by £1 and changesto £6. Basically the comparability between the two situation price is commonly known asrelation economics statics. That relate the comparative analysis of fresh equilibrium element withthe primary one and it will occur because of few variable changes in the enterprise workingsituations. In economic term, equilibrium point is an elements in which the price of goods within amarket generate the appropriate demand and supply of different goods and services for customerso that productivity can be raised and profit are maximised. Therefore with the support ofEquilibrium point the Polo Mint are able to create policies and strategies as per the requirementin order to attain the actual goals. The below mention graph shows the significant explanation ofequilibrium point that further aid to analyse the actual demand and supply.2
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