BM533: Contemporary Business Economics Assignment on Demand and Supply

This report delves into the core concepts of contemporary business economics, specifically focusing on the laws of demand and supply. It provides a detailed explanation of the law of demand, illustrating movements along the demand curve and changes in the demand curve with the aid of diagrams. Similarly, the report explores the law of supply, including movements along the supply curve and changes in the supply curve, also supported by visual aids. The analysis includes how these economic principles are applied in business settings. The report aims to provide a thorough understanding of these fundamental microeconomic concepts and their impact on business operations. Additionally, the report references various academic sources to support the analysis and conclusions.

Contemporary business
economics

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Explain the law of Demand, movement along the same demand curve (with the aid of
diagram) and changes in demand curve (with the aid of diagram...............................................3
Explain the law of Supply, movement along the same supply curve (with the aid of diagram)
and changes in supply curve (with the aid of diagram)...............................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business economics concentrates on the economic issues and problems that are related to
business association, management, and plan of actions. The concept "market economics" is a
crucial aspect of classical economics, and it refers to the understanding of advanced theories to
real-world situations. This report will include the law of Demand, movement along the same
demand curve with the aid of diagram and changes in demand curve and the law of Supply,
movement along the same supply curve with the aid of diagram and changes in supply curve
(Petkova-Gourbalova, 2020). It is strategic expertise in the respect that it is a mechanism for
administrative decision-making that can accelerate the design process.
TASK
Explain the law of Demand, movement along the same demand curve (with the aid of diagram)
and changes in demand curve (with the aid of diagram
The law of demand is known as one of the essential aspect in economics. This is associated with
working of law of supply (Domanovic, 2020). It is used for demonstrating the way in which
market economies have access for allocating resources. This is used for determining price of
services and goods which are provided to customers on regular basis (Aldeen, Ratih, and
Herianingrum, 2020). The law of demand provides information about quantity which is
purchased and the amount or price variation for the product. As a consequence, a shift in the
demand curve happens when the price of the commodity rises and the quantity demanded
changes in accordance with the original demand relationship (Matović, 2020). Consumers are the
first units of economic goods needed for serving as the most urgent needs. These are used as per
additional units of goods for serving lower valued ends in successful manner.
Figure 1 Changes in demand curve, 2020

As according to the law of demand, if all other conditions remain constant, the higher the price
of a good, the lower the demand for that good. In other words, the lower the amount demanded,
the higher the price (Rupeika-Apoga, Romānova, and Grima, 2020). The sum of a good that
consumers consume at a cheaper price is smaller when the opportunity cost of purchasing that
good rises as the price of the good rises. As a result, consumers would automatically stop
purchasing a commodity that requires them to forego intake of something they enjoy more
(Matović, 2020). The curve in the graph above has a downward slope. It will includes the
manner of the sources that how the people use partial means to meet unlimited wants. The law of
demand concentrates on those unlimited needs. A change is a difference in the shape of a curve.
A change in price and quantity expected from one point on the demand curve to the next is
shown by a displacement on the curve. The trend indicates that the demand-supply relationship is
stable. As logically the individually involves the term as in order to the more urgent wants and
needs as over to the less urgent ones in their economic behaviour and it will carry over into the
manner that how the people will select the manner of the limited means that are available to them
(Rupeika-Apoga, Romānova, and Grima, 2020). Other consumer goods that are alternatives or
complementary items, as well as their costs, may influence demand. Changes in the environment
that affect customer habits, such as seasonal fluctuations.
Figure 2 Demand curve, 2020

Explain the law of Supply, movement along the same supply curve (with the aid of diagram) and
changes in supply curve (with the aid of diagram)
The law of the supply is the micro economic law that states all the other factors as being
equal as to the price of a product of the good or service and facilities that will maximize the term
of the quantity of products and their facilities that will going to offers to providers and it will
maximize the terms in the business as effectively in the ratio of the manner of the business
(Block, and et.al., 2020). The law of supply will termed as the manner that as the cost of the
value will initialize the cost of an item that goes up to the suppliers that will figured to increase
their revenues by maximizing the amount that are offered for sale in the business.
Figure 3 Supply curve, 2021
As the term of the supply curve will be rising at the upward sloping as because most of the time
the suppliers will select that how much of their products and goods will get produce and after the
manner of the stability in the market place as effectively. A movement occurs as the amount
sought changes by a proportion purely due to a price change, and vice versa. The demand and
their total profitable capacity over the agreed time period and the external knowledge available to
combine insights (Block, and et.al., 2020). At any phrase of the point in time though, the source
that traders bring to market is stable and sellers will going to simply the manner of the decision
that will they sell or refuse their stock from a sale of the consumer demand that sets the cost of
the price and sellers that can only charge what the market will bear or will get afford as per to
their amount of manner in the business (Yildirim, and Ildokuz, 2020). If the consumer demand
will rises as over to the time as to the price that will rise and the suppliers will select the manner
to dedicated the new term of resources for the production and the new suppliers will directly
enter in the market to maximise the amount to be supplied. As the demand that will ultimately

sets the value of the price in the competitive form of the market as the supplier will get response
to the price that they can assume to accept the set of the quantity that are supplied. The term of
the supply is the quantity of the major source of the commodity that will set their orientation to
get offered by the stable business or the seller at the manner of specialise cost of the price
meanwhile as per to the given period of time. On the other side, supply is the basic part of the
stock that is brought in the market for the purpose of the sale (Petkova-Gourbalova, 2020). A
market supply will refers to the quantity of the manner of the commodity that all firms are able to
offer at the specific set of the cost of the price as during in the given period of the time. An
upward and great rise in the cost of the price will frequently leads to maximise the resources of
the market in the quantity supplied of that products or facilities that will fall in the manner of the
cost of the price in ratio to minimise the quantity to get supplied as effectively.
Figure 4 Changes in supply curve, 2020
The manner of the positive relationship as in between to the price and quantity that are supplied
with the higher cost of the price that will leads to the higher manner of the quantity that are
supplied and the lower cost of the price will get leads to the lower manner of the quantity that are
supplied and that all state to the law of supply in micro economics (Sepashvili2020). As the law
of supply are similar to the law of the demand that will assumes that all other variables will get
mark the supply that are held to be equal in the equilibrium (Yildirim, and Ildokuz, 2020).
CONCLUSION
From the above report it has been concluded that, issues and problems that involves in the
manner of an explanation of the corporate firms that are emerge and will present. As per to the

manner that it will be expanded as horizontally, vertically and spatially and manner of the role of
entrepreneurs and entrepreneurship the terms that the significance of an organizational structure
relates to the relationship of the firms with other employees and the providers of the capital,
customers, and government that follows the interaction in between to the firms and the business
setting in the business as effectively.

REFERENCES
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Matović, I.M., 2020, June. Evolution of the Business Plan in Contemporary Business.
In Proceedings of the 17th International RAIS Conference on Social Sciences and
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Evidence from Latvia, a Small Post-Transition Economy. In Contemporary Issues in
Business Economics and Finance. Emerald Publishing Limited.
Block, J.H., and et.al., 2020. The entrepreneurial finance markets of the future: a comparison of
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Yildirim, H.H. and Ildokuz, B., 2020. Determining the Relationship Between CAMLS Variables
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