Microeconomics and Behavioural Economics Analysis for Family Mart

This report analyzes the law of demand and supply, shifts in their curves, and compares traditional and contemporary economic theories for Family Mart. It also discusses the impact of factors like production cost, technology, and government subsidies on supply.

Contemporary
Economics Analysis

Table of Contents
Introduction......................................................................................................................3
TASK 1..............................................................................................................................3
Study the law of demand, its motion along the dd curve & the proportion of variation in
the demand curve with an aid of a suitable diagram....................................................................3
Analysis of the law of supply, its respective movement with the supply curve & evaluating
the variation in supply curve with a respective curve...................................................................5
Task 2................................................................................................................................8
Compare & contrast leading theories & models in 21st century contemporary economics and 20th
century, & connect both of these to advance practices of venture...............................................8
Conclusion......................................................................................................................10
References.......................................................................................................................11

Introduction
The sector of economics is based on investigation of persons and a brief explanation
of the influences of the human behaviour while circulating the decisions with the changes that
they are facing because of the change in the current economic conditions. Therefore, it takes
the scenario of the political and psychological sector in the economy. The two main factors
that impacted the flow of products and services in the economy is the demand and supply.
This report is being made in the context of is Japanese company Family mart. It is the second
largest chain in the Japan(Baccini, 2020). Considering the numbers of stores of Family mart
is more than 24,574 stores operating their work in the different regions. The aim of this report
is to highlight the two major postulations that is the law of demand and the law of supply
with the evaluation of their shifts in the curves. With that a brief discussion about the theories
of 21st and the 20th century with comparison between them will be analyse.
TASK 1
Study the law of demand, its motion along the dd curve & the proportion of
variation in the demand curve with an aid of a suitable diagram.
The theory of the demand evaluates the tendency of the customer to buying and
paying for the goods and services according to their ability in the provided time.
Law of demand:
This explains that there are an inverse relation between the price and the supply so demand
for the certain commodity in the market place. The difference remains stable as the various
factors that impact remains constant. When the price of the goods increases there is a fall of
the quantity that is demanded(Carter, Castro and Morcos, 2018). In the context of the
company that has been chosen , Family mart , the demand of the goods will gradually
decrease with the increment in the prices.

Factors influencing the demand of the commodities:
 Price of the commodity- The relationship between the price and the goods in inverse
with the context of the demand of the commodity. The buyer is always inclined
towards the situation where the prices on the discount so that they make an increment
in the level of their purchase.
 Price of the substitute goods- There are the goods in the market that can be
substitute when there is an increment in the price of a particular commodity by
considering the law of demand, as the price of the substituted increases, the demand
of the goods that has been used earlier increases. Family mart can make profit in this
by enhancing their share in the market by giving discounts offers.
 Price of the complimentary goods- The commodities proven to be an compliment to
one an another because the change in the price in one of them, a change in the demand
on the other can be seen. Family mart may experience this situation in the future.
 Income of the user- It is the key factor which analyses the demand of the commodity
which is depended on the how much a consumer is earning. When the income of the
customers increases, the demand of the commodity tends to be increases in contrast to
that the demand of the inferior goods decreases because the capacity of the consumer
of paying increases. Family mart can get the advantage of this situation from this
factor.
 Taste and the preferences of the buyer- In this changing world. The preferences of
the buyer in context of goods tend the shifts from time to time with the ongoing
changes in the trends in the market. Consumer will purchase from the Family mart
when the company changes according to the market trends.
 Changes in the expectations in the future- There are the factors that have a direct
relation with the supply of the goods. The buyer will surely make an increment in
their power of purchasing when there is the change in the price of the goods in the
near future. Family mart should use this an opportunity to make best use of this
situation when there is a need of maximum benefits.
Shifts in the demand curve:
`The changes that arises due to the changes in the factors can make direct impact on
the products and services that has demand in the market. The factors can be included the
difference in the price, change in the income of the consumer, changes in the taste and
preferences and the price of the complimentary or the substitutes. In this case there can be

shift in the left and right shift in the demand curve. When there is a change due to the
difference in the factors that make impact on the demand curve and the whole curve of
the demand which can make shift either or the right.
Analysis of the law of supply, its respective movement with the supply curve &
evaluating the variation in supply curve with a respective curve.
Supply refers to the situation that is related with the available amount of the goods
and services which are present for the added sale in the target market with the given
prices through which the make higher profits and revenues.
Law of Supply:
According the this law, its stated that the prices and the quantity that is supplied of the
particular goods and services having positive relationship. When the prices of the particular
products tent to increases then its effects can be seen on the entire supply of that particular
products in the market(Anokhina ,Maksimov,. and Seredina, 2019). The goal of the supply is
ti make increment in the sale so that they can make more profits. While the minimization of
the prices of the goods and the services also minimizes the overall supply of the goods in the
particular marketplace. While in the context of the Family mart, increment ion the prices of
the products and services rises the whole supply of product in the entire market.

Factors which are influencing the supply of the particular commodities are illustrated
below:
 Cost incurred in production : In this the organization can increase and sale the
products and services if they have the enough raw materials and labor in which the
high level of revenue and profit is generated while on the other hand the factors of
production which decreases the supply overall commodities in the targeted market
and this tends to reduce the entire sales of the business . family mart has the focal
point on the factors which influences the production and ensuring the better sales in
the market place.
 Technology: This refereed to the progression and the utilization of updated versions
which are available for innovation which increases the profit margin with the regards
to Family Mart, the innovation can lead to an increase of the supply and commodities
collectively in the market.
 Government subsidies: This has the edge and advantage which has the relation to the
collective consideration in the target and specific market, which leads to reducing the
pieces overall. For instance, a decrease in the charges of Japan can prompts an
influence on the generic result of the organization and this likewise increments stocks
of the commodities in the particular aimed market.

 Weather : Looking at the approaches and aspects, which are not being constrained by
an association and it reflects and shows the general supply of all the commodities
which are available In thought to Family Mart, they are working in the food retailing
as the hurdle of the overall stocks as the weather is acting as a barrier in the provided
marketplace.
 Objectives of firms: Radically there are two kinds of organizations that are mostly
profit and social welfare-oriented as the firm is attempting to expand its benefit then it
needs to limit its generic costs by which it can build the whole deal in the commercial
marketplace.
 More firms: There are few organizations which are leading their progress in the
given market and while taking the consideration of Family Mart, expansion in the
number of contenders limits the general stockpile of items and administrations on the
lookout. On another hand, a decrease in the number of firms can prompt an increment
in the offerings in the supply marketplace.
Change in supply curve:
This essentially referred to the change in the stock curve
because of the numerous and varieties of the options at the expense of creation, condition of
innovation and duties and so forth this is additionally evident from it that when the generic
inventory of merchandise rises then the stock bend will move from s0-s1 and on other hand,
the decline in supply bend move the whole inventory bend from s0-s2.

According to the given supply curve, it is being determined that the immediate relationship
between the costs and the amount of supply has a direct relationship as the curve has the
upward moving slope as the rise of commodities of supply collectively (Thilagavathi, 2018).
Family Mart, the stock bend will move from s0-s1. On another hand, the decline in the given
costs as the process tends to decline the overall goods in the particular place.
Task 2
Compare & contrast leading theories & models in 21st century contemporary
economics and 20th century, & connect both of these to advance practices of
venture.
Business financial matters and contemporary financial aspects incorporate the
different hypotheses with the better examination of specific fields of financial aspects and the
economics which is having a significant impact on the enhancement and improvement of
disciplines (Henchion, and Zimmermann, 2021.) . Corresponding to Family Mart, this
fosters neglect the whole efficiency and additionally has the primary concern towards the
given objective spot that is getting in the twentieth and 21st century which are additionally
represented:
Traditional Economic Theories
Neoclassical theory: This theory is founded by carl menger and the Leon Walras . in this
theory their major objective and the relation was the demand and supply are driving force and
the focal point is to offers the quality product to their customer with in the economy due to
this they can have the better utilisation of economy(Varshavskay and Kotyrlo, 2019). in
context of family mart the each and every individual are integrated and with the continuous
changes in needs and demand in which they can have the sustainability in the market for the
longer term. Looking at the current consumption the induvial are consuming the goods and
services by evaluating and analysing the business model in the market place .
Keynesian economics theory : This specific theory is related to the employees which has the
better and efficient operations in the company as well as the consideration that the wages and

the products given and fixed by all the employee . their major focus and aim is the effective
and efficient working in the company . within the economy this they have generated the
enough profits and the revenues for the organisation which is being affected . As keeping the
factors which are related to the prices and having the major objective which has the effect in
the market and the entire revenue and money in the business enterprise
Contemporary Economic Theories
Behavioural theory: This theory was launched and founded by Richard thaler and by having
the amalgation of psychology and the environment in which the proper access of having the
effective and optimistic behaviour of the people who are sustaining and surviving in the
society (Adhikari, Bisi and Avittathur, 2020). with regards to the family mart there are
certain evaluation and the understanding of the specific behaviour of the individual
employees as they are efficient in which the assist in the better communication . in the time of
covid this theory focus was the induvial that is having the major objective of getting the
great and significant amount of revenue by reducing and minimising the general cost which
was sensed on the certain base and criteria .
Nudge theory: This is the particular hypothesis which is having the indirect ideas with the
structural and efficient authorisation by which they can break down and analyse as well as
examine the way of behaving of the individual so they can have the better choice making. In
regards of Family Mart, this specific investigation helps . During the COVID-19, this
likewise helps in the better utilization of hypotheses which can be utilized by the person with
their major and foremost concern in the monetary aspects so they can more great and readily
serve the organisation .
Conclusion
From the above repot it can be concluded that the analyzation where the demand and
supply are the foremost vital part of the economy. which helps in proper flow of the offerings
in the market. there are few approaches and aspects which has the influence and the effect in
the demand of the particular goods and service. in the market are price of goods, income of
buyer and the choices of the buyer as well the future expeditions. There is vice versa and the
indirect relation with the demand and price with the specific target of the commodity. further
it can be explained in wider concepts where the supply has the direct relation with the prices

and quantity of the goods. the production cost, the state of technology and the supply entirely
in the market (Wang, Ma. and Chen, 2019). the production cost and the subsidies which are
offered by the government in the market. has the generic overall impact in the goods and
supply in market place. the neoclassical and Keynesian behavioral are being used by the
company which can ensure the efficiency and effective development in the business
organization.

References
Books and Journal
Wang, S., Li, L., Ma, W. and Chen, X., 2019. Trajectory analysis for on-demand services: A
survey focusing on spatial-temporal demand and supply patterns. Transportation Research
Part C: Emerging Technologies, 108, pp.74-99.
Adhikari, A., Bisi, A. and Avittathur, B., 2020. Coordination mechanism, risk sharing, and
risk aversion in a five-level textile supply chain under demand and supply
uncertainty. European Journal of Operational Research, 282(1), pp.93-107.
Varshavskaya, E. and Kotyrlo, E., 2019. Graduates in engineering and economics: Between
demand and supply. Educational Studies, (2), pp.98-128.
Henchion, M. and Zimmermann, J., 2021. Animal food products: policy, market and social
issues and their influence on demand and supply of meat. Proceedings of the Nutrition
Society, 80(2), pp.252-263.
Thilagavathi, M., 2018. The factors influencing the non-performing assets in the Indian
banking sector: An economic analysis. International Journal of Contemporary Research and
Review, 9(10), pp.21080-21086.
Anokhina, M.E., Maksimov, M.I. and Seredina, N.S., 2019. A guide to contemporary
strategic analysis.
Baccini, A., 2020. A bibliometric portrait of contemporary history of economic thought.
In New Perspectives on Political Economy and Its History (pp. 39-62). Palgrave Macmillan,
Cham.
Carter, K.J., Castro, F. and Morcos, R.N., 2018. Insights into breast cancer screening: a
computer simulation of two contemporary screening strategies. American Journal of
Roentgenology, 210(3), pp.564-571.