Microeconomics and Behavioural Economics Analysis for Family Mart
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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.
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Contemporary Economics Analysis
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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 21stcentury 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 21stand the 20thcentury 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: ï‚·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. ï‚·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. ï‚·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. ï‚·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. ï‚·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. ï‚·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
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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: ï‚·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. ï‚·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. ï‚·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.
ï‚·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. ï‚·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. ï‚·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.
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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&contrastleadingtheories&modelsin21stcenturycontemporary economics and 20thcentury, & connect both of these to advance practices of venture. Businessfinancialmattersandcontemporaryfinancialaspectsincorporatethe 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 certainevaluationandtheunderstandingofthespecificbehaviouroftheindividual employees as they are efficient in which the assist in the better communication . in the time of covid this theory focuswas 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 indirectideas with the structural and efficient authorisation by which they canbreak down and analyse as well as examine the way of behaving of the individual so they can have the better choice making. In regards ofFamily 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 analyzationwhere 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 companywhichcanensuretheefficiencyandeffectivedevelopmentinthebusiness organization.
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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. InNew 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.