Business Economics is concerned with economic issue and problems related to business organization, management and strategy. Issues and problems such as the following: an explanation of why firms emerge and exist; why they expand: horizontally, vertically and spacially; the role of entrepreneurs and entrepreneurship; the significance of organizational structure; the relationship of firms with employees, the employees, the providers
of capital, the customers, the government; the interactions between firms and the business environment.
If an increase in the price of a commodity causes households to expect the price of a commodity to increase further, they may start purchasing a greater amount of the commodity even at the presently increased price. Similarly, if the household expects the price of the commodity to decrease, it may postpone its purchases.
Thus, some argue that the law of demand is violated in such cases. In this case, the demand curve does not slope down from left to right; instead it presents a backward slope from the top right to down left. This curve is known as an exceptional demand curve.prestigious goods also fail law of demand.
Perfect competition is an abstract concept that occurs in economics textbooks, but not in the real world. That’s because it’s impossible to attain in real life. Imperfect competition occurs in a market when one of the conditions in a perfectly competitive market are left unmet. This type of market is very common. In fact, every industry has some type of imperfect competition. The business cycle describes the rise and fall in production output of goods and services in an economy. Business cycles are generally measured using the rise and fall in the real gross domestic product (GDP) or the GDP adjusted for inflation.