Unit Information
Unit code: BEO7001
Credit points: 12
Understanding customer demand is essential to business success, and supply and demand modelling is a cornerstone of economics and business modelling. Determining viable pricing is fundamental to pricing and production decisions. Supply and demand modelling also informs, and is informed by, the decisions of rivals. This unit will critically review how supply and demand conditions influence business decision making and complex pricing decisions.
Students will learn about supply and demand modelling within diverse markets and industries, including traditional manufacturing, multi-sided platform markets, and service-based industries. The unit will also develop student understanding of fixed and variable costs of production, economies of scale/scope, monopoly/monopsony, substitution effects, complement effects, price elasticity, market externalities and pricing in markets absent of scarcity, and the implications of such concepts for supply and demand analysis and pricing strategy.
On successful completion of this unit, students will be able to:
- Critically appraise the methods and techniques employed in supply and demand forecasting, and their application under differing market conditions;
- Examine the difference in pricing products and services in traditional versus modern markets;
- Analyse the impact of price elasticity on price determination;
- Exhibit a sound understanding of key economic concepts of substitutability, complementarity, and market models in price determination, and demand modelling; and,
- Implement sound demand modelling methodologies in application to a complex market scenario.
- Participate in an academic community through reflective and critical engagement in academic texts and understanding of principles of academic integrity.
| Item | Assessment | Graded | LO Alignment | Grad Caps Alignment |
| Assignment | Pricing decision for substitutable and complementary products | 10% | 2, 3 | 1, 2 |
| Case Study | Estimating demand within a multi sided platform market | 40% | 1, 2, 3 | 1, 2 |
| Research Paper | Managing supply shortages as demand surges | 50% | 3, 4, 5 | 1, 2 |
| Other | Evidence of completion of the Academic Integrity Modules (Hurdle) | 0% | 6 | 1, 2 |
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