Business Economics: Demand, Supply, Theories, and 21st Century Models

This report provides a comprehensive analysis of contemporary business economics, focusing on demand and supply principles and their application to real-world business practices, particularly within the context of Reckitt, a British multinational consumer goods company. The report explains the law of demand and supply, detailing the factors that influence demand and supply curves, including price, substitute goods, consumer income, production costs, and technology. It also compares and contrasts emerging economic theories and models of the 21st century with those of the 20th century, connecting these theories to specific business practices to illustrate their practical implications. The report uses diagrams to visually represent the concepts of demand and supply, and discusses the impact of government subsidies, firm objectives, and market competition on supply. Ultimately, the report provides a detailed overview of key economic principles and their relevance to business operations.