BM533 Assignment: Demand, Supply, and Economic Theory Analysis

This assignment solution addresses key concepts in contemporary business economics. Task 1 focuses on explaining the law of demand and supply, illustrating movements along the curves and changes in demand and supply curves using diagrams. The analysis includes examples and real-world applications to enhance understanding. Task 2 compares and contrasts emerging economic theories and models of the 21st century with those of the 20th century, relating both to modern business practices. The solution references relevant economic theories and models, providing a comprehensive overview of the subject matter. The assignment examines the evolution of economic thought and its relevance to contemporary business challenges, offering insights into the dynamics of market forces and economic decision-making.

Contemporary Business
Economics

Table of Contents
TASK 1............................................................................................................................................3
1.1 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
1.2 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
TASK 2............................................................................................................................................8
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...............8
REFERENCES..............................................................................................................................11

TASK 1
1.1 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 concept of demand is known as amount which is paid by the consumer for a product or
service. It is evaluated that concept of demand depends upon the requirements as well as the
basic need of the consumer. There is also slight difference between or need and want of a
customer. There are several economists who have provided their views upon the demand for stop
it is also said that fonts and needs are not the same thing according to the views of customer full
stops when abortion is not having enough amount or money to pay for a product bus service he
or she can move to another product that is a substitute of that product. When the product is not
being bought by customer and is not able to manage the payment of products then it is having no
effect on the demand. It can also be said that there is deeper understanding of Dave particular
gorgeous offices amount paid which is known as price. latest total number of amount that is
purchased by the unit for different service and products (Chi, Huang and George, 2020). it is
known as the rise of product which is rising due to the declining quantity. It is also said that
when there is decline in price then quantity of that product is increased within market. It can be
explained with an example that when price of onion is increased then demand automatically
declines. People consume the product when it is cheaper. There are several economists who have
provided their thoughts on the basis of relationship between price and quantity. It can be
concluded that there is inverse relationship between price and quantity but then market. This is
known as law of demand. According to the law of demand, it is concluded that there are different
variables on which demand has being a constant factor and price and quantity I haven’t invoiced
relationship. This can be explained by the following graph -

Figure 1Demand curve
(Source: Demand concept, 2019)
From the above demand curve, it can be easily concluded that the relationship between price and
quantity is a normal golf which demonstrate or inverse relationship. it is said that when price
rises then Quantity demanded will be decreased (Cohen, 2021). This is analysing from above
curve that price connected with demand curve is providing a sign of inverse relationship between
price and quantity which is demanded. This cough shows are proper effective product in that
area. It is also said that the relatively flattering steep or straight curve reflects the fundamental
similarity between slope down from left to right (Hafezalkotob and et.al, 2018). The increase in
price and quantity decline states that when price of a product is increased then quantity will
automatically decline in terms of demand. When there is change in demand it is associated with
slight shift on the entire demand curve. Moreover, it can be very that different factors linked with
demand including preference, income, substitute product and population are also affected. There
is change between quantity demanded then it refers to the movement of demand curve in
Association with management of change in price (Nadal, Szklo and Lucena, 2017). According to

the management in terms of present days the change within demand curve does not move
quickly. According to the curve shown above it can be said that difference between quantity
demanded and tries is evaluated by the area between the two craft. Price is basically the willing
amount which customer is able to pay for a particular product or service. Law of demand
actually states that when there is increase in price, customer has to demand less according to an
economic wellbeing. If this law is followed effectively then it helps in interaction with actual
market price determination and the volume of product or good which can be treated equally.
Some of the independent elements present in market for shaping it includes supply and demand.
Low demand is basically depending upon economic laws which are trying to manage the
economic principle in proper way. There is different type of consumers were willing to pay a
particular price but only if they are getting list price within market.
1.2 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)..
Supply of any product or service within market is independent of the quantity. According to law
of supply in economics, Wendy product or price quantity is supplied in market then prices
lowered according to the quantities supplied. There is a supply call and supplies schedule which
are essential techniques used for managing the relationship between supply and price. there are
number of economists who are managing their viewpoint on supply management within market.
The basic understanding means that amount of food services produced is depending upon the
basis of supply as well as quantity (Novkovska, 2020). Prizes known as what are consumer Is
giving for a particular service or product. There is an example by which this concept can be
easily understood. When price of onion increases within market then supply. The substitute for
this product within market Is easily sorted for managing the sales of that product within market.
Supply is basically autumn which is dependent upon the market needs. It is also essential that
law of supply is properly economically managed within market. The basic reason for it is 2
manage the actual reasons why economists are working up on the management of supply and
demand. The following code shows the supply management within market for equilibrium
position.
The law of supply is known as basic principle within economics which is a certainty assumption
in which all the factors are constant and there is increase within price of products in gold status
resulting in corresponding increase within supply. This law states that behaviour of producer for

the product when prices rising or falling. This law states that when there is rising price then
tendency for increasing supply increases because there is no profit that can be earned. Similarly,
when price falls then producers are tends for decreasing the production because of the minimised
economic opportunity for increased sales and profits (Woodring, Hyde and McLennan, 2021).
There is overriding relationship between quantity and price . it is applied with all the factors
being constant and this factor affect the quantity supplied for the given product. There are
following factors because of which supply has to remain constant. These are mentioned below
Figure 2Supply curve
(Source: Supply change, 2019)
Cost of production: when there are change between the cost of raw material or Labour in order to
produce the unit of supply than volume will change accordingly. It is assumed that filling price
remains same. Next Lane technological change Cologne according to the advancement within

technology there is boost for the efficiency with which the unit is produced. The cost of
production is minimised by managing the similarity affect due to cost of production (sŽic, and
Žic, 2019).
 Legislation: when there are different regulatory laws and quotas which I put together in
place for limiting the quantity of given product or service produced is manageable. This
can be explained with an example including when there is energy industry like carbon
offsets then the limit amount certain companies are able to supply.
 Periods of uncertainty : there are several situations in which business are at high risk. In
this way producers are inclining for minimising supplies and offload older inventory. In
context of civil wars there are producers were eager for selling and managing lower price.
Supply is known as quantity of commodity which is offered by a seller or company at a
particular price during the period of time. It can also be said that supply is the part of stock in
that is being actually bought into market of sale. A market supply is defined as quantity of
commodity that all companies are able to offer for a particular price during a given period of
time.
Law of supply simply states that when all the factors are remained constant then price and
quantity supplied for the product or good are directly related to each other. This can also be
concluded that when price paid by buyers for good rises then the supply increases. Law of supply
properly depicts that producer behaviour according to the time of change.
The law of supply properly states that factors which are being equal. quantity supplied is known
as amount of good and services which these sellers are the link to sinful stop when the producer
or seller notices that there are more of their goods being sold then there actually so doesn't ask
adopt more for stuff this needs supply lines slope in the opposite direction to demand. The main
reason behind this is a Fortunately cost becausr as price increases then there is an incentive for
producing more goods. A supplier wants to make more money and profit so he focuses upon the
soul on the profitable activity. Wendy quantity supplied increase if then resources will become
more expensive due to the scarcity.
There are several determinants of supply which are known as things which can cause supply
curve to shift left or right. These includes government policy, income, technology com
expectations, price of related substitutes and complementary good. Government policies are
having large impact upon suppliers. The transport infrastructure is also moving according to

government policy and funding. That is why direct provision of transport services, indirectly
encouraging transport services and regulatory and legislative measures affect certain market
behaviour. Supply elasticities also associated with demand effect. It can be said that supply
elasticity shows this.
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.
John Maynard Provided different viewpoint upon economic knowledge. This individual
provided his views upon different factors associated with economics. This person stated that
every person is having different perception for the price and quantity of the product within
market. There are different viewpoints of people within mind set and the technique which they
are using for managing deep correct conclusions. In the 20th century, economics share believing
to look the world through our distinct kind of era. They are focusing upon the different type of
professionals who are present within market and getting the economics products from stop these
included practitioners former and anthropologists former classicists and biologist who stop these
people are having different issues and challenges which they have to beer in order to manage the
market development for stop the main objective of this new economic theory is that there is
collection of different issues present within market and they have to provide effective solutions
to that. There are different complex issues which have to be effectively managed in order to
develop abstractive representation of the model. Different architecture present who manage their
decisions according to the market position and situation. In context of economics theory given in
21st century innovation economics is the major factor on which all decisions are dependant.
According to this policy, there are different policymakers involved in appreciating the way in
which innovation and technology are used for development and growth within market . there are
several factors associated with macroeconomic complex issues like social spending, tax cuts,
budget surplus. These all have to be properly managed in order to overcome the significance of
innovation within economic development. It is also concluded that when management of
principle is focusing upon equilibrium as well as individual acting then it is off great rational.
When the supply and demand curves of the economic market are being affected by innovation
then all factors have to be properly managed. There is need for developing effective Equilibrium

within market for managing the actions was perfected with different economic institutions. There
is different demand of motion for different management activities which are actually taking place
in spell chequer insurance companies and governmental issues. The policymakers are present in
which doctrine of innovation economics as being implemented for managing host of economic
policy changes . if you have any doors including regulatory policy common western policy, tax
policy which managed turned off several years. I did also state that different economics are
managing different theories which are providing the toolkit to different professionals regarding
the knowledge of economics . some of the complex issues and problems are being solved by the
terrorists . introversion intake cortisol bank issue and managing product planning. There are
different tourists for economics which are managing mathematical equations as graphs. There are
different rules draught which is look for managing difficulties associated with economic and
social stuff economics is the concept used for managing different problems along with supply
and demand Tory. These are having effective solutions in order to manage though problems
associated with economics. Old new classical theory of economic growth, it is concluded that
different aspects associated with economics are aggregated on production function. As for
aggregate outcome of economy which is totally depending upon the aggregate functions for
managing proper conventional factors associated with production and manufacturing. It provides
detailed authority for managing quantity of capital and Labour. There are other means such as
used for efficiency of revealing technology dissenting economic for developing and managing
the global functions. There are different characteristics for this model which provides an
underlying information regarding production functions. These have properly communicated in
order to manage the technological efficiency and evolution of technology in managing constant
return . this is associated with in 20th century and manage these striking growth issues in
characteristics. This is assumed that it is for sake of simplicity as well as pollution for managing
Labour in order to interact with different kind of marginal productivity. There are different
economic models for developing the issues associated with present economic problems.
Macroeconomics is associated with the contribution of managing dominated approaches in order
to develop the decade sector. There are different characteristics associated with macroeconomics
used for managing the economic returns. There are different equilibrium and growth for
managing the assumptions in order to manage the transition of unemployment as well as
financial system crisis . there are different analytical straitjacket for managing the parity of

managing recognition of active charge . bold different functions are present in empirically
grounded diagnostic techniques for managing the building and analysing of models as well as
tools. The effectiveness of managing bids and idolising model for blinking the macroeconomics
and spreading the change across the sensor stop there is need to develop new economic and
developmental areas in order to enhance the productivity.
Figure 3Flow of circle
(Source: Economics circle flow, 2019)

REFERENCES
Books and Journals
Chi, M., Huang, R. and George, J.F., 2020. Collaboration in demand-driven supply chain: Based
on a perspective of governance and IT-business strategic alignment. International Journal of
Information Management, 52, p.102062.
Cohen, E., 2021. Regulating Demand or Supply: Examining Israel’s Public Policy for Reducing
Housing Prices During 2015–2019. Housing Policy Debate, pp.1-16.
Dafnomilis, I., Hoefnagels, R., Pratama, Y.W., Schott, D.L., Lodewijks, G. and Junginger, M.,
2017. Review of solid and liquid biofuel demand and supply in Northwest Europe towards 2030–
A comparison of national and regional projections. Renewable and Sustainable Energy
Reviews, 78, pp.31-45.
Hafezalkotob, A., Mahmoudi, R., Hajisami, E. and Wee, H.M., 2018. Wholesale-retail pricing
strategies under market risk and uncertain demand in supply chain using evolutionary game
theory. Kybernetes.
Nadal, R., Szklo, A. and Lucena, A., 2017. Time-varying impacts of demand and supply oil
shocks on correlations between crude oil prices and stock markets indices. Research in
International Business and Finance, 42, pp.1011-1020.
Novkovska, B., 2020. Skills demand and supply in North Macedonia: an analysis at regional and
local levels.
Song, H., Yu, S., Liu, F., Sun, X. and Sun, T., 2020, December. Optimal Subsidy Support for
Market-Oriented Transformation of Elderly Care: Focus on the Gap between Supply and
Demand in Aging Regions of China. In Healthcare (Vol. 8, No. 4, p. 441). Multidisciplinary
Digital Publishing Institute.
Woodring, D., Hyde, T. and McLennan, J., 2021. There's Demand For Recyclate, But Little
Supply: Recycled and virgin plastics pricing decouple as global supply gap widens. Plastics
Engineering, 77(2), pp.39-41.
Žic, J. and Žic, S., Experimental analysis of market demand influence on greenhouse gas
emissions in supply chains. In Proceedings of 10th International Scientific Conference on
Management of Technology-Step to Sustainable Production (MOTSP 2018)/Ćosić, Predrag-
Zagreb: Croatian Association for PLM, 2018 (p. 128).

Online
Demand curve.2019.[Online].Available
through:https://www.economicshelp.org/blog/581/economics/changes-in-demand/
Supply change.2019.[Online]Available through:<
https://www.economicshelp.org/blog/1811/markets/diagrams-for-supply-and-demand/>
Flow of circle.2019.[Online].Available :https://policonomics.com/circular-flow-diagram/