Contemporary Economic Analysis of Walmart

BM533
CONTEMPORARY
ECONOMIC
ANALYSIS

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK-1............................................................................................................................................3
Explanation of law of demand, movement with the demand curve and changes in demand
curve factors in regarding to Walmart........................................................................................3
Explanation of law of supply with movement along its curve and shift in supply curve of
Walmart.......................................................................................................................................6
TASK-2............................................................................................................................................8
Difference between emerging theories and models in 21st century and 20th century, and
related both of these with Walmart business practices...............................................................8
REFERENCES..............................................................................................................................11

INTRODUCTION
Economics may be defined as the use of economic analysis to make business decision
involving the best use of an organisation's scarce resources. Economics focuses on business
economics. This theory is based on the relationship between customers and firms. Economics
considers other filed such as mathematics, sociology, psychology and law of economy. This
economics uses the resources in efficiently and effective manner to achieve the social and
customer goals. It focuses on Gross Domestic Product and the Consumers Price Indexation. The
humans are satisfied unlimited wants, economists determine how resources are issued
distribution, production and consumption (Alatawi, 2018). In this report, discuss about the
concept the law of demand, law of supply and the factors which are affected the demand and
supply curve one of the company Walmart which is situated in UK. Further in this report discuss
about the emerging theories and models in 21st century and contemporary economics with 20th
century.
TASK-1
Explanation of law of demand, movement with the demand curve and changes in demand curve
factors in regarding to Walmart
Demand- Demand means the quantity of goods and services that buyers are willing and
buy the product and services at different prices in certain period. Demand in economics is
something more than the desire to purchase, through desire is one element of it. The effective
demand is based on the some factors such as desires, means to purchase and willingness to use
that is purchase. Walmart is a multinational retail corporation that provides the daily goods,
beauty aids and pharmacy to their consumers. It produces the product on the basis of customer
requirement. The demand of the product and services determines the actual prices of goods and
the volume of the Walmart company (Bagnall and et.al, 2018). The two things are to be
considered about the quantity demanded.
 The quantity demanded is based on the given price. At different prices different quantities
of a commodity are generally demanded.
 The quantity demanded is flow. It focuses on the continuous flow of purchases. The
demand for a product or services and the relationship between demand and its
determinants are important for a business. The most important factors which is

considered while determined the demand they are as price of commodity, disposable
income of the consumers, tastes and preferences of buyer and customers expectations.
Law of demand- it is important concept of economics. It is the backbone of the law of
supply because it determines the allocation of resources and prices of the product and services in
every transaction. There are inverse relationship between the law of demand and prices. If the
demanded is high then product of prices low. It is occur due to diminishing marginal utility.
Consumers use of those product which is needed to first, and they consume each extra unit of the
product to serve back to back lower value ends. People need to unlimited wants but the law of
demand satisfied the unlimited wants of consumers. In reference to Walmart company, it focuses
the people need. It provides those goods which is needed of the people first and fulfill the
customer's need (Bălan and et.al, 2021).
Movement along the demand curve: Walmart faces the demand curve situation of its
product. There are various factor which is affected the demand of product and effect of these
product can directly observed in demand curve. When the price of the product change then
demand quantity of the product is also changed but all other things remain same. The other
things such as consumer's income and taste with product and services are remain same but price
of the product change (Caufield, 2019). The movement of demand curve includes with upward
and downward changes.