BM533: Contemporary Business Economics - Supply, Demand, and Theories

This report analyzes the laws of supply and demand within the context of contemporary business economics, using Burberry as a case study. It examines the factors influencing demand curves, including consumer tastes, income levels, advertising expenditure, and price fluctuations. The report also elucidates the law of supply, detailing how government subsidies, technology, firm objectives, weather conditions, production costs, and market competition affect supply curves. Furthermore, it compares and contrasts economic theories and models from the 20th and 21st centuries, relating them to modern business practices. The analysis includes diagrams illustrating demand and supply curves, providing a comprehensive overview of the dynamics influencing market equilibrium and business strategies.

BM533:
Contemporary
Business Economics

Table of content
Table of content...............................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Analyse law of demand and also with movement and further change for all factors which
affects the demand curve.............................................................................................................3
1.2 Explain the law of supply, movement along with the supply curve and also explain change
in supply curve with suitable diagram.........................................................................................7
TASK 2............................................................................................................................................9
Compare and contrast emerging theories and models in 21st century contemporary economics
with those of the 20th century, and relate both of these to modern business practices................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Economics is the most crucial part in all the sectors as it helps out in managing the
budgets and the plans through which all the effective areas regarding the products and the
services are being considered. Micro economics is generally a branch which is being made for
attaining and having the effective management of the firms, individuals, households and many
more. In all the economic areas. This presumes to provide all the decision making to be managed
through all the demand and the supply and the decisions which are implied for all effective scale
areas though all the marginal utility. All such marginal utility helps out to give satisfaction to all
the consumers and there is being seen that all the major areas and the additional services are
outlined and managed effectively. Demand is mainly the desires for all the purchase of the
goods and the products in order to manage the surplus amount and payment (Murai, 2021). This
report will cover the law of supply and demand and the business products for the organisations of
Burberry. Some of the major factors which are required in order to maintain the supply and the
general demand for all the products and business in Burberry. There will also covered the
economic theories which are elaborated in 20th and 21st century.
TASK 1
Analyse law of demand and also with movement and further change for all factors which affects
the demand curve.
Law of Demand is merely all the purchased quantity along with the inverses prices being
applied in it. This manages and provides that when there is given the higher prices it will lessen
the demanded quality of the product. This implies to have the diminishing areas and the general
marketing utility. When in all such areas where the decrees in all the marginal utility is made this
will their by make the decline in the in the quantity for all the further demand and the prices
being fixed. Consumers implies to have the initial unit which is for all the economic product
which are being made in order to manage the needs and the for all the additional units of
products so as to attain the successively complied less valued areas (Ramírez-Tovar, and et. al.,
2021). As in the context of Burberry there is seen that it covers to have the elastic demand
through which their will be promoted to have the certain minimum changes in all the prices
given for the product. This also leads to have the high proportionate areas through which
effective changes in the demand in managed. So this can be implied that in all such areas where

the changing prices are being applied in Burberry product will make the customers to not to buy
more and also to shift to other organisations which covers the same variety of the products and
the services.
Demand Curve in all Burberry Products
In several areas there is been seen that when the demand is fluctuated and changed the
customers will thereby make the further response for all the diminishing values in general
purchasing power given for several products. All such this are being made in cases when the
price along with the quantity will be given constant for the products (Ranjbar, and et. al., 2021).
Illustration 1: Demand Curve for Burberry Products, 2020
Factors in Demand Curve with changes

Illustration 2: Changes in the demand for all Burberry products, 2021
All the major demand in certain product will be changed in case where there is been seen
that the prices which are being made are reluctantly varied. All such changes will imply to
manage the positioning in the market areas and the commodities and their will also be affect in
the further areas and the major positioning and segments. All such factors will make the price to
lead and turn the demand curve. Major factors which are needed in order to manage the demand
are Q1 to Q2 and this is resulted for several demand curve which changes from P1 and that also
shift in D1 to D2 (Bockman, 2020).1. Taste and preferences- Their is been seen that all the consumer choice will be
determined regarding the particular services and the goods. All the main reason for the
changes will be taste and the general preferences regarding the consumers in Burberry as
it imp[lies to have the tremendous changes in fashion. All such majorly being dependent
on the proper advertisement through which all the producers and the main seller can
make the impact of the product. If there is provided the taste and the preference of the
customer then this will make the demand increased through the positive feedback and this
will automatically create an adverse impact for all the diminishing demands. All such
things will lead to make the demand curve to shift from rights to left (Nadar, and
Vijayan, 2020).2. Income- It is the most important factor and this provides that all the major areas and the
income are majorly being dependent on the demand of the goods. Their is been seen that
in all the major areas income can only be increased in all such cases when the purchasing
power of the consumers is enhanced as that will make them to afford all the goods and

the material and will also make them to buy more products through which the de,and
curve will shift in the right. Other then this in case when there is decline in the demand
when their income is decreased and this will automatically diminish the value of the
product as the customer will not be buying any such. And through this the demand curve
will be shifted to left (Cecco, 2020).3. Advertisement Expenditure- This is the most effective and the important part in all the
company as their analysed that when their seems that the proper and the effective
advertisement is being made by the company then their will be given and managed the
more buying by the customers and that will also influence the customer to buy more and
shift the curve towards right. When Burberry make less use of this sense of
advertisement and this implies to make the consumers to get less attracted and to decrease
the demands of the goods (Agarwal and Agarwal, 2021).4. Changes and the fluctuation in the prices of goods- it is also been provided that there is
considerably some of the product on which the demand will be dependent on different
products as there are certain complimentary products on which all the goods usually
makes the changes and the prices vary with certain advancement.
Change in demand curve

Through this diagram it is been seen that in all the implied shift all the demand curve
usually shift to right side in case when the demand is further increases and when there is
decrease in all such areas then their will be decrease in the services and the large goods. As
according to this demand curve its initial place is d0 and then the curve will shift from the d1 and
d2 as according to the preferences of the consumers and regarding to their future expectations.
1.2 Explain the law of supply, movement along with the supply curve and also explain change in
supply curve with suitable diagram.
Supply is mainly the fundamental process in which all the total availability is according
to the sale which is made for all the potential areas and the buyers for all the larger markets. This
is been illustrated through graph(Styhre, 2020).
Law of Supply
This contributes to provide the major positive relation in between the prices and also in
the quantity which is being supplied it helps out to manage the products to all the extent and in
all larger segments of the market. As when the company goods are being managed through the
increased commodity then this will raise the prices by the supplier in order to manage the more
growth it will also apply and make the higher profit. Burberry manages to sell at higher prices to
all their consumers.
Through this supply curve there is seen that all the sloping upwards will create the
positive relation in the prices and through the quantity for all the larger areas and markets. This
figure gives that when the prices in goods P3 is managed by the supplier and the supplying areas

q3 implements the prices through the commodity that will tend to enhance the goods in p3 to p2
so as to manage the goods in all the areas for managing the supply more.
Factors which affects the supply of specific goods are like: Government subsidies- As when their seems that all the government subsidies are been
increased this will manage and make all the enhancement in the commodities and also
with it the prices of the cost of various goods. All such consideration will thereby terms
top reduce the supply for all the other goods. Technology- It is mainly the digitalisation and the innovation which is being used by the
company in order to make the profit and the growth with further development through
which all the increase in the supply of goods are being made. This also reduce the overall
cost which is being faced by the organisation (Simeonov, 2021). Objectives of firms- In all such areas where the company tends to manage all the growth
and the effective management with the general record and their will be provided that
here the main aim on which the company generally focus will be to enhance the price so
as to increase the profit. Weather- It is mainly the impact of the weather on which the company will have to
understand all the nature and the elements through which the firm can there by work and
maintain all the overall profitability. Cost of production- For all the firms there is provided that various offers are being
provided in which all the level of the production and their affect regarding the insufficient
demands for the raw material is provided through which all the reduction in the products
are managed by the sufficient amount of supply in all commodities. More firms- This implies to have the high competition fro all the market areas and this
attains to have the main impact in firms. their will be given the better products through
which the higher profitability in the firms are managed. It will also reduce the prices for
all the supply for the goods and their enhancement with the major areas and the general
compliance.
Change in supply curve
It refers to shift of whole of the supply on different factors on which all the growth and
the effective management is being laid. For instance production cost, taxes and technology. Their
is been given the supply of all the goods and the rise in the chain with the curve shift from s0 to

s1 and also the reduction in the supply of the curve shift from s0 to s2. Through all such
measures there is been given the main elements in which the method of the production and the
alignment is being attained and framed.
As through this diagram their is provides that all the prices of the commodities are top be
managed and rise through the supply. It makes the curve to be shifted from s to s1 and as the
price will decreased then the supply will be increased(Vecco, Chang,and Zanola, 2021).
TASK 2
Compare and contrast emerging theories and models in 21st century contemporary economics
with those of the 20th century, and relate both of these to modern business practices.
Some of the important theory which are being by various economist as for the existing
areas in the 20th and the 21st century for managing the effective business given are like:
Neoclassical Growth Theory
Through this theory there is been given that the economist manage the enhancement by
1956 where they provided the national bureau for all the economic researcher and this implies
top make the major focus on the economic areas and the growth for all the effective areas in the
company and the organisation. They have 3 important factors and they are like the capital,
technology and the labour.

In this theory there is been given that all the short-term equilibrium frames and maintain
the different kind ad amount of capital and the labour through which the effective production is
been made. It considers to have the capital and labour with all the attainment and the different
areas thorough which the production can be enhanced. It provides that all the major changes will
play a role in all the sector and in order to enhance the economy the technology is required to be
managed to maintain the production. It is generally the short term along with the long-term
equilibrium, as this will not need any kind of factors. This theory also manages the accumulation
in all the capitals and also ensure the way in which people are managing all the capitals for the
technological development(Flash, and et. al., 2020).
Marx Social economic theory
This theory is propounded by Karl Marx and is based on the communism as well as as
capitalism. he was inspired from the classical political economist, namely, David Ricardo. it is
argued as per this that there are two of the main classes which are capitalist wherein it is
understood that the social and economic system is being helped in a modern world. the capitalist
are business owners who manages usually process of the production and are responsive for many
means which are managed by the people of many production which means that it includes raw
materials, tolls and the factories who are entitled for having more of the profits.
Keynesian Economics theory
As per this theory, this includes goods which includes an assumption that the wages as well as
price are being stick in the nature and it also provides the explanation as to how economy shall
work in changing environment. there are mainly three of the factors like aggregate demand,
wages as well as price that reflects usage of the resources in the proper manner that leads to take
the enhancement of companies in larger marketplace
CONCLUSION
it is concluded from this that the demand as well as supply are such factors which makes sure
that the business has high level of profit and the flow of the products and services in
marketplace. the supply has the positive and healthy relationship with the quality supplies as well
as price of the particular product as price enhances overall goods supply which makes it increase

and the vice versa. the demand is also considered as an essential factor which have the inverse
relationship between demand as well as price then demand of provided goods decreased. also,
there are many theories which includes Keyesian Economics theory, marx Social economic
theory and the neoclassical theory which are the emerging one in the 20th as well as 21st century
and it also contributes to the development and growth of the company.

REFERENCES
Books and Journals
Agarwal, A. and Agarwal, A., 2021. Principles of economics. SBPD Publications.
Bockman, J., 2020. 3. Neoclassical Economics and Yugoslav Socialism. In Markets in the Name
of Socialism (pp. 76-104). Stanford University Press.
Cecco, M., 2020. 8. Keynes and Italian Economics. In The Political Power of Economic
Ideas (pp. 195-230). Princeton University Press.
Flash, and et. al., 2020. Contemporary Issues in Business Economics and Finance. risk, 60,
p.136.
Murai, A., 2021. Selfish, Therefore Reciprocal: The Second Marginal Revolution of Mises. In A
Genealogy of Self-Interest in Economics (pp. 167-188). Springer, Singapore.
Nadar, E.N. and Vijayan, S., 2020. Managerial economics. PHI Learning Pvt. Ltd..
Ramírez-Tovar, and et. al., 2021. The Colombian Energy Policy Challenges in Front of Climate
Change. International Journal of Energy Economics and Policy, 11(6), pp.401-407.
Ranjbar, and et. al., 2021. Measuring Price and Income Elasticity of Demand Function of the
Iranian Imports. Iranian Economic Review.
Simeonov, S., 2021. A Contemporary Look at the Social Consequences of
Globalization. Ikonomiceski i Sotsialni Alternativi, (3), pp.52-69.
Styhre, A., 2020. Thinly and thickly capitalized projects: Theorizing the role of the finance
markets and capital supply in project management studies. Project Management
Journal, 51(4), pp.378-388.
Vecco, M., Chang, S. and Zanola, R., 2021. Contemporary Art Fairs in Mainland China: From
Local to International Status?. The Journal of Arts Management, Law, and Society,
pp.1-20.