Supply and Demand Analysis and Factors Affecting Them

ECONOMICS FOR
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Supply and demand analysis and factors affecting them ..........................................................1
TASK 2 ...........................................................................................................................................6
Evaluate economic policies that used to influence consumer retail spending in UK.................6
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business economics mean applied economics that study the financial, environmental and
market related issue faced by entity. It is he study of functions of a economy such as supply and
demand. It include all the factors in which entity operate, it focus on factor of external economic.
And also influence by change in rules and regulation of industry norms. Managerial economics
is the type of this which means decision making done within the company. It is apply to non-
profit organization also which mean they have to use capital to remain constant within the
economy. This report is based on retail sector which show the impact of economic factor on the
retail organization. It also covers supply and demand analysis and provide the factor in
determining positive and negative shifts related to consumer demand for retail goods and
services. In UK, economic policies used to influence consumer retail spending.
TASK 1
Supply and demand analysis and factors affecting them
Demand analysis- In this first understand that demand is an process refer to customer
desire to purchase goods and services and willingness to pay the price for given goods and
services. In this analysis there is both positive and negative shift in demand curve is happen by
the increase in price or decrease in price which result in decrease and increase the quantity
demanded. In this market demand is also used which mean total quantity demanded across
customer for a given good. And aggregate demand means total demand off all goods in the
economy. It is an technique to know that business is successfully enter into market at right time
or not to expand their operation. It is closely related to supply curve but both are opposite to each
other (Supply and demand, 2018).
Supply analysis- It is an economic concept that describe the total amount of goods and
services which is available to consumer by the producer to sell at various prices. It refers to the
specific price available across a range of product. In this analysis if people demanded a product
and willing to pay for it. In supply when price of product increase producer are willing to
manufacture more product to realize more profit. If there is when price of product decrease
producers are not able to cover the cost of final goods (Supply and demand analysis, 2016).
Each product and service have their own demand supply pattern which is based on the price and
quantity. In the situation if the person is ready to pay more than the demand of the product is also
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increase. As the supply increase the price of product fall down. Through this marketer reach at
the equilibrium in which supply equals to demand for a specific product at a given price at a
given point.
Positive shift in demand curve
In this diagram, there is an increase in the demand curve which result in positive change in the
consumer retail spending. In this Do is increase to D1 due to many reason which result in
increase in price and increase in quantity,and supply remain constant.
Positive shift in supply curve
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