Demand and Supply Analysis of Morrison: BM533 Contemporary Economic Analysis

Module code and
titleBM533
Contemporary
Economic Analysis
Contents

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Elaborate the law of demand along with its movement with the help of the diagrams. Also
describe the factors which influence the demand curve..............................................................3
1.2 Define law of supply and supply curve with the reasons of change in the supply curve......6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Contemporary Business Economics is a branch and model of economic which deals with the
modern tools and concepts of economics. The economics is a comes where the individual’s
choice, attitude and behaviour can influence the market conditions of demand and supply. The
demand and supply depends on the purchase and supply of the products and service which exists
and are available to the consumers (Adusah-Poku, Dramani and Adjei-Mantey, 2021). In the
following report, the company chosen is Morrison which is into the retail business and deals in
supermarket in UK. It is a well – known brand in UK and also runs its operation across various
other countries. The report consists of the concepts of demand and supply in relation to the
organisation with the help of the diagrams.
TASK 1
1.1 Elaborate the law of demand along with its movement with the help of the diagrams. Also
describe the factors which influence the demand curve.
The law of demand is a concept which states that the quantity of goods which are purchased and
the prices of those products are inversely related to each other. From this it can be analysed that
higher is the price the lower is the demand of the product. This happens due to the concept of
diminishing marginal utility. Caused due to this, the demand quantity of the goods changes
which the change in price (Bekaert, Engstrom and Ermolov, 2021).
Demand Curve for the Morrison Products:
When interest in an item changes, customers respond by reducing the purchasing power of their
item. This happens when various elements other than cost and quantity remain consistent.