Economic Aspect Of Economics

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Introduction Economics is the branch of science that deals with the different aspects and relations of the manufacture, circulation and consumption of the product between the people in the financial term. The nature of the economics in any nation or organisation is totally dependent upon the economic representatives of that nation (population) or organisation (labours) working together and the alliance among them. Economics in an organisation can also be understood as the movement of money through different channels like as, labours, stake holders, taxes, employees and customers etc. In this paper the diverse parts of the financial aspects will be examined and I am taking Sainsbury as an example. Task 1 A. Explain the economic problem…show more content…
The elasticity of demand shows variations from lower to higher values which are directly proportional to the variation in the demand of market, resulted from the rise or fall of price (of any commodity). However the elasticity of demand is not implacable on every good and so the goods are divided into following categories: Perfectly Elastic – The goods which follows the concept of elasticity of demand…show more content…
Unitary Elastic – The goods which do not show any changes in the results with the concept of elasticity of demand. Inelastic – The good which partially does not follow the concept of elasticity of demand. Perfectly Inelastic – the good which does not follow the concept of elasticity of demand at all. In the case of Sainsbury, “the third largest chain of supermarket in United Kingdom”. We can look out for the examples of elasticity of demand very easily. For an instance the fall or rise in the price of food, shelter and machines do not show elasticity of demand, as they fall into the category of basic needs of people and so are inelastic in nature. But if there is any slight change in the price of liquor, or any other luxuries which are elastic in nature you can notice the fluctuations in the elasticity of demand. Elasticity of demand can be classified as: Price Elasticity Demand: In this situation a rise or fall in the price of a commodity is directly proportional to the change in the demand of the commodity. Income Elasticity Demand: In this situation a rise or fall in the income of the buyer is directly proportional to the change in the demand of the
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