Report on Demand and Supply: Real-Life Examples in Business Studies

This report provides an introduction to business studies, focusing on the core concepts of demand and supply within a market economy. It defines demand and supply, explaining their roles in determining prices and market equilibrium. The report delves into the key determinants influencing demand, such as the price of substitutes, consumer income, and technological advancements, using real-life examples to illustrate their impact on market dynamics. Furthermore, it highlights the importance of demand and supply in economics, particularly in sales forecasting and marketing decisions. The report concludes by emphasizing the significance of understanding demand and supply for long-term business success and growth.

Introduction to business
studies

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
A brief introduction defining demand and supply......................................................................1
Analysis of key determinants using real life examples...............................................................2
Importance of demand supply in economics...............................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The business studies are an element that comprise of finance, accounts, operational,
marketing and organisational studies that aid a business to attain long term sustainability with
adequateness and perfection (Cato, 2020). In addition to this it also consists of business
administration, accounting, analysis, computing, statistics, developing markets, human resource,
finance, research and technology, commercial law and many other aspects as well that assist to
enhance working possibilities in effective manner. Economy is an aspect that define certain
distribution and trade that is well consumed about goods and services in competitive
marketplace. The report below provides better analysis about demand and supply that is
comprise with real life examples.
MAIN BODY
A brief introduction defining demand and supply
In concern of microeconomics, demand as well as supply is considered as economic model
through which subsequent determination of supply is addressed within competitive marketplace.
The relationship in between supplies and demand is based on quantity of specific commodity that
is produces as per wish list of consumers and buyers. The price of any of commodity is
determine with support of suitable interaction that is processed in market so as to develop better
interaction and in resultant equilibrium pricing and standardised agreement is induced in between
consumer and producer of goods. The law of demand and supply is defined as per price of a
suitable goods and services along with the willingness of customers to either sell or buy those
products and services. The law of demand determines that higher the goods price lesser the
demand and lesser the price higher the market demand (Hoskovec and et. al., 2018). It produces
suitable opportunity that is forgo with adequate consumption of goods that is also be replicate
with concern of suitable values.
On the other hand, as per concern of law of supply the sold quantities is dependent on the
upward slope that mean higher the price higher the supplied quantity as well. If producer supply
goods and services at higher rate the selling price justifies better opportunity as concern of
additional unit sold.
1

Analysis of key determinants using real life examples
The determinants are those factors that affect and influence the quantity and quality of
standardised products and services. The product price is an essential factor that affect the
willingness and ability of supply that is offered and processed by business in adequate mode. The
demand drives economic growth that basically increase working demand under which
sustainable profit is achieved as in timely frame. There are different determinants that has unique
impact over the demand and income processing of buyers which is as explained below as:
Price of substitutes: The price of substitute is increases and related to the suitable products
and services that is considered under demand of an individual (Hu, 2019). There are a lot of
business those are working in similar field and offer same goods and services to marketplace that
directly leads towards enhancement of aggressive competition. It has direct impact over demand
and supply of business and the product price induce direct subsequent towards revenue
generation. For instance, customers get attracted towards those products only those are lesser in
price and better in quality. Thus in this all the businesses have looking forward to advance
working possibilities along with management and effective utilisation of all resources.
Consumer income: It is a factor that is dependent on the rise of income as with this
quantity as well as demand get affected. As when income falls the demand also get fall but on
contrary if income level increases an individual doesn’t purchase particular goods of twice rate.
For example, ice cream taste more delicious and if an individual want to eat it healthiness
doesn’t matter and it is a case of marginal utility and it get decreases as from where individual
doesn’t want anything more.
Technology: It is most essential basis that assist the business to advance technology usage
along with this working credibility’s and its effectiveness getting advanced over a continuous
period of time. In this business get advanced its working infrastructure through which profitable
ending is resulted as after completion of certain aspect and in this ability to achieve standardised
outcome is perceived with timely frame (Marx, 2019). The technological advancement enhances
the working capability and with this capability to intensify rate of completion is increases on
random basis which also govern positive situations for business to expand. For example, the
usage of technology like at purchasing counter reduces overall time period and with this work is
being processed with effectiveness.
2

Importance of demand supply in economics
The supply and demand both are essential prospect and with this availability of standardised
goods and services in competitive market along with market demand is fulfilled with
adequateness. Demand reflect the desire of customers towards purchasing of goods and also act
as a measurement of consumers willing about to pay for specific products and services. There is
different importance of demand supply that is as explained below as:
Sales forecasting: It is a basis that reflect the production of company which is directly
dependent on demand analysis (Orrell, 2020). For instance, if market demand is higher, sales rate
also get increases and if demand get reduces it decreases the sales efficiency as well. For this
business worked for to reduce and manage production under which sales capability is increases
on direct basis.
Marketing decisions: It is an analysis that is used to formulate market decisions as with this
demand is analysed on the basis of market formulation as its necessities. It is a force that
influence and manipulate the buying and decision making behaviour of consumers. For this
business offered attractive package through which stronger consumer base is developed in
effective manner.
3

CONCLUSION
It has been concluded from the above report that economy basis offers better
acknowledgement about production and distribution of suitable goods and services through
which consumption and distribution of products and services is processed with effectiveness.
Moreover, the demand and supply is an essential measure that is considered to process working
as per suitability and market acceptance by which long term success and growth is attained with
balanced mode.
4

REFERENCES
Books and Journals
Cato, M.S., 2020. Environment and economy. Routledge.
Hoskovec, J.M. and et. al., 2018. Projecting the supply and demand for certified genetic
counselors: a workforce study. Journal of genetic counseling, 27(1), pp.16-20.
Hu, M. ed., 2019. Sharing economy: making supply meet demand (Vol. 6). Springer.
Marx, K., 2019. The Critique Of The Political Economy. e-artnow.
Orrell, D., 2020. A quantum model of supply and demand. Physica A: statistical Mechanics and
its Applications, 539, p.122928.
5