Economics for Business Models PDF
Added on 2021-02-19
14 Pages3210 Words24 Views
|
|
|
Economics For Business
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY ..................................................................................................................................1TASK 1............................................................................................................................................11. Identify the factors which determine the price of private housing in UK by using supply &demand analysis...........................................................................................................................1TASK 2............................................................................................................................................71. Evaluate the government policies that used to stimulate the demand for private housing inthe UK..........................................................................................................................................7CONCLUSION .............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONBusiness economics include the applications of economics in the organization andmanager develop their strategies through analysing the concepts of demand & supply. Beforeformulating any strategy they have top determine those factors which impact the business & theiroperations (Berck, 2018). Through implementing various theories & models of economics in theorganization will helps the business to improve their productivity as well as profitability. Thisproject report contain various topics such as factors which impact the price of private housing inthe UK by using demand & supply analysis. In addition, include the government or economicpolicies which used to impact the demand of private housing in UK. MAIN BODY TASK 11. Identify the factors which determine the price of private housing in UK by using supply &demand analysisEconomic: It is the study of resources which utilized in order to maximise production aswell as profitability. Basically, business has to follow economics rules for optimum utilization ofresources and produce valuable products which satisfy customer needs & demands. In context ofbusiness, economics will used to manufacture commodities, distribution and trade to maximisevalue of business. There are various factors need to identify before developing any strategiessuch as identify demand & supply of product on competitive price range. Law of supply anddemand will impact the production as well as profit margin by using at the time of formulatingstrategies and it discuss below: Law of supply & demand: It is an theory which show the interaction between seller orbuyer of particular product or resources. This theory show the impact of product or price due toavailability of resources (Demil and et.al., 2015). Basically, in this law price and quality plays animportant role and its relationship will affect the demand as well as supply of goods. Law of demand: This theory represent the behaviour of individual according to thechange in product price. It has been assumed that other factors are constant and only price willimpact the demand of consumer. For example: When price of product is high then demand willbe automatically reduced and similarly, when price of goods reduce then demand of product willautomatically increases (Law of Demand, 2019). There is opposite relationship between price or1
quantity demanded by the individual. This relation will be represented in graphical form whichmention below:Illustration 1: Law of Demand, 2019.(Source: Law of Demand, 2019)From the above mention graph it clearly represent that when price of product increasethen it will reduce the demand product. Where increase in price from P2 to P1 will reduce thequality from Q2 to Q1. Similarity, it will happen in the case of reducing price from P2 to P3 willincrease demand from Q2 to Q3. Law of Supply: In case of product supply, there are positive relation between price orquantity (Law of Supply, 2019). When price of the commodity increase then supplier increase theproduction and the other hand, when price of product low then produce reduce the productionbecause of low demand of goods. Below mention graph will provide better understating of law ofsupply:2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents