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Microeconomics and Behavioural Economics Analysis for Family Mart

   

Added on  2023-06-10

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Contemporary
Economics Analysis
Microeconomics and Behavioural Economics Analysis for Family Mart_1

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
Microeconomics and Behavioural Economics Analysis for Family Mart_2

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.
Microeconomics and Behavioural Economics Analysis for Family Mart_3

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
Microeconomics and Behavioural Economics Analysis for Family Mart_4

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