GBS BM533: Contemporary Business Economics Report, 2020-21

This report, prepared for the BM533 Contemporary Business Economics module, critically examines microeconomic concepts of demand and supply. Task 1 delves into the law of demand and supply, illustrating movements along and shifts in demand and supply curves with diagrams. The analysis considers how these principles impact businesses. Task 2 compares and contrasts emerging theories and models in 21st-century economics with those of the 20th century, relating both to modern business practices. The report covers key economic concepts, applying them to real-world scenarios, providing a comprehensive understanding of contemporary business economics.

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............................................................................................................................................6
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...............6
REFERENCES................................................................................................................................9

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 aspect of law of demand is associated with the amount which is paid by people for a
particular service or product. In this is considered that concept of demand totally focuses upon
the requirements within the basic requirements of a person who stop it is managed that different
differences of needs and tastes among the customers focused upon by managing the customer
review. There are sometimes when product is not available by the customer and in this they have
to manage the payments for products can stop then there is no effect on the demand. It is also
provided that when there is deep understanding regarding the particular and finances which are
to be paid is known as price will stop the main amount which is provided by the purchase on unit
of different products and services is particularly depending upon the demand. It is also
considered that when there is decrease within price and quantity of that product will increase but
then market will stop but is also experienced that when price of cereal in market increases in
demand automatically declines (Bolton and et.al, 2020). There are different people who require
their time to consume more production services when they the price is cheap. The same
economics have provided their viewpoints upon the management of relationships regarding
quantity and price for stop they have been focusing more upon the conclusion of variable that
depends upon constant factor of price and quantity. There is fundamental similarity among the
slope which is going from left to right that signifies increase in price and quantity decrease
would stop it can be set that quantity is automatically declining in context of demand. It can be
said that it is changed only upon them and consistency and associated with shift from the demand
go we stop it is also signified that different elements are associated with demand which includes
substitute product, preference for income and population which are getting affected by the
management (Coester, Hofkes and Papyrakis, 2018). It is considered that change between
quantity demanded is defined as the movement of demand go within the association of change in
price value. There are different terms within present days which are associated with demand
called and they do not move enough with my room. According to the girls showed in graph, it is
implied that a lot of difference is present between quantity demanded and the areas where there

are two scenarios. Law of demand is totally depending upon the increase within price and
customer has to deal with him and less according to the economic value stop it is considered that
this law is focusing upon the economic laws that are implemented for but adding different
economic principles and effective manner (de Oliveira Leite, and et.al, 2020). Different type of
consumers is willing for paying particular price and getting deep list price according to the
market value of stock.
Law of supply as the basic value of principle in context of economics in which there are certain
assumptions provided between the elements which are kept constant and there is hike between
the type of product status provided the value stop it is totally depending upon the corresponding
increase within supply. According to this law, there are different behaviour of product for the
tendency of increasing the supply . It is only related with the profit value that can be earned. Any
similar kind of value, there is decline in price when producers are tending for declining the
production stop main reason behind this is minimised economic opportunity for increased profits

and sales would stop when there are overriding relationships between price and quantity then
different elements are kept constant and factors affect quantity supplied for that product or
service. The friend factors are associated with which supply has to remain constant. Some of
these are described in the following paragraph.
Cost of production: there are different challenges when the cost of raw materials or labour has to
be produced in a unit of supply which is to be managed by the volume which changes on this
particular basis so stop it can be set that filling price has to remained constant while managing
the factors of the created with supply.
Technological change so long it is considered that asked the advancement within technology,
there is boasting of efficiency within the unit produced for stop the cost of production totally
depends upon the management of similarity affecting upon the cost of production would stop
Legislation alone there are different regulations and laws which depends upon the hotels where
quantity of given service is product is not manageable (Liang and et.al, 2020). I just associated
with the example of managing energy industry like carbon offsets and managing different
companies that have to be applied particularly.
Economics explains how people and families use limited resources to satisfy their seemingly
limitless desires. The law of demand is built on this precise premise. People, in general, use their
limited resources to purchase items that they desperately require. Individuals' general economic
conduct pushes them to spend their money on the products they desire and need.
Periods of uncertainty for long products are present in which there are business Associated with
the balancing costs prize quantity of the product required for the customers. In context of
different wars, there are producers were willing to sell them to adapt at very low price. in this
case demand factor is kept as a constant one.
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)
The law of supply is the term economists use to describe the positive price and amount provided,
in which a higher price leads to a larger amount provided and a lower price leads to low amount
provided. Like the law of demand, the law of supply presupposes that almost all elements that
impact supply (which will be detailed in the following paragraph) are maintained constant. Law
of supply is significantly managing for the elements which are remaining constant anti price and
supplied quantity for product and food which are associated with each other so stop it can be

considered that when the price demanded for consumers increases then supply is automatically
enhanced for stop your supply is associated with the depiction of producer behaving in context of
change (Selmi, Tiwari and Hammoudeh, 2018).
The law of supply is associated with different type of elements which are kept constant at first
and these are maintained for the high profile management within market or stop in context of law
of supply, it is concerned that there are different factors which are skip equal and quantity
supplied depends upon the amount of services and goods which are provided to the adoption
could stop in context of supply lines, the slope within opposite direction to demand is reflected.
The reason for fortunately depending upon the cost is associated with price when there is
increase within the incentive and more goods and products are consumed. Supplier has to make
more money and profit in order to focus regarding the selling off profitable activities and

carriers. The direct provision of transport services and indirectly encouragement of transport
services as well as legislative measures are introduced for certain market behaviour. The supply
elasticities depend upon the supply stream and management proforma. Elastic demand impacts
the slope of a line, and price changes travel along the supply line, just as it does with demand.
Supply elasticity is the same as demand elasticity, and because it is limitless, it may be depicted
on a graph as a horizontal axis. On a graph, supply inelasticity is represented by a vertical line.
Time to manufacture, stock, spare capacity, and the flexibility of system components are all
elements that influence supply price variations. Supply is elastic if these elements are changeable
(Stiglitz, 2017). Products having a short lifespan, such as fresh fruit, are inelastic because the
time it takes to get them to customers is limited, and stock and overcapacity are limited. Long-
lasting goods, such as french fries in a can, are more flexible.
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.
According to different economists, there are different market conditions which have to be
properly managed in order to focus upon different supply and demand requirements. John
Maynard is one of the economist who have provided his viewpoint upon the economicst barriers
which are focusing upon the demand and supply constraint. There are different individuals who
have given their views upon economic conditions within market full stop according to this
person, there are different viewpoints of the people depending upon the economic status. This is
focusing upon the price and quantity required for managing the viewpoints. There is deep
conclusion for the corrective measures required for managing economic supply and demand.
Within 20th century, the economic factors have changed a lot. It can be seen that economics is
assuring the belief and value of increased demand and supply factor. It depends upon different
type of professionals who are present within market and managing the economical value of
products which has to be prepared in terms of managing profitability and share approvals. The
market demand for different complex issues it’s also being analysed effectively in order to
manage and develop abstractive representation of model. There are different architectures
conclusions which present the management of decisions according to market position and
situation (Suglobov and Semenova, 2017). The theory of economics clearly states that within 21st

century, there are different innovation within economics and it has totally provided the decision's
asper own requirement. When there are different factors associated with regulatory policy and
common western policy then tax managing depends upon different theories of bank issue.
Different tourists for economics are also focusing upon the mathematical equations representing
different graphs. They have efficient solutions for managing the problems associated with
economists. Old knew classical theory of economic growth depends upon the aspects associated
with aggregation of production function. These are depending upon outcome of economy and
managing the functions associated with conventional policies. There is also explanation
regarding detailed industry and authority of managing quantity of labour and capital. Different
means including revealing of technology and disseminating of economic values are also involved
in global functions. Some of the characteristics of model depends upon production functions and
these are associated with draw relation and functions of different variables. There is a proper
communication associated with technological efficiency and evolution in order to manage
constant factors and characteristics (Weedon, 2017). There is as option for the sake of simplicity
and managing pollution for avoiding different decade sectors and managing active charge. These
are involved with analytical statement in order to manage parity of grounded diagnosis.
Economists have been hooked on GDP as the initial indicator of economic success for more than
half a century, but GDP is a false aim that has to be replaced. In the twenty-first century, a
considerably more ambitious and worldwide economic aim is required: satisfying the needs of all
people within the nation's resources. Write your goal on the page, and it ends up looking like a
doughnut, strange as it may seem. The task now is to build local to global economies that ensure
that no one goes without the necessities of life – from food and shelter to health insurance and
political influence – while also protecting Earth's life-giving systems, which include everything
from a warming society and fertile land to healthy ocean waters and a barrier protection ozone
layer. Mathematics has long been plagued by mathematics admiration: inspired by Isaac
Newton's creativity and breakthroughs into natural laws of motion, nineteenth-century
philosophers were obsessed with uncovering economic rules of vibration. But they don't exist:
they're merely theories, like the notion of supply curve, which blinded economists to the
impending 2009 banking collapse. That is why, in the twenty-first century, economists choose
complexity and darwinian thought. Putting dynamic thinking at the center of economics reveals
new perspectives on the emergence of the few % and also the property bubble of capital sector.

It's past time to give up looking for the economy's illusive control knobs (they don't exist). When
it comes to injustice, macroeconomics in the twentieth century delivered a compelling message:
it needs to become worse before it can get better, and growth will ultimately balance things out.
But, as it turns out, severe inequality is a technological mistake, not an economic rule or
necessity. Economists in the twenty-first century acknowledge that there are several methods to
construct economies that are significantly more distributive of value among people who
contribute to its creation. That involves moving beyond redistributing income to dispersing
wealth, such as wealth derived from land ownership, business ownership, and the ability to
produce money. A clean environment has long been marketed as a luxury commodity, only
accessible to the wealthy—a notion that holds that pollution must rise before it can fall, and that
(surprise!) growth would ultimately clean it up. However, there is no such economic law:
environmental deterioration is the outcome of degenerative industrial design, just as there is no
such law for inequality. In order to establish a circular, not vertical, financial system to restore
ourselves as independent learners in Moon's cyclical cycles of life—this century requires
economic ideas that releases the promise of adaptive reuse. Forecasts for GDP growth in many
high-income nations have flattened, alarming governments and bankers and triggering a crisis in
growth-based economics. Mainstream economics believes that continuous GDP growth is
required, yet nothing in nature increases indefinitely, and the economic endeavor to deviate from
this trend is creating difficult concerns in high-income but low-growth countries. That's because,
whether or not they help us prosper, today's economies must develop. There are different views
of economies that enable us to flourish, regardless of whether they expand or not. That
fundamental shift in viewpoint urges us to become growth agnostic and investigate how the
economies are changing which are now financially, politically, and socially destabilized that can
be transformed.
.

REFERENCES
Books and Journals
Online
Demand curve.2019.[Online].Available
through:https://www.economicshelp.org/blog/581/economics/changes-in-demand/
s
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/