Supply and Demand Strategy for Pricing

Unit code: BEO7001 | Study level: Postgraduate

Credit points

(Generally, 1 credit = 10 hours of classes and independent study.)

Location

Victoria University Online

Prerequisites

N/A

Overview

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.

Learning Outcomes

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.

Study as a single unit

This unit can be studied on its own, without enrolling in a full degree.

Learn more about single units of study at VU

Assessment

For Melbourne campuses

Assessment type: Assignment

Grade: 10%

Pricing decision for substitutable and complementary products

Assessment type: Case Study

Grade: 40%

Estimating demand within a multi sided platform market

Assessment type: Research Paper

Grade: 50%

Managing supply shortages as demand surges

Required reading

Selected readings will be made available via the unit VU Collaborate site.

As part of a course

This unit is studied as part of the following course(s):

Graduate Certificate in Business

BTBU | Graduate certificate | Duration: 8 months

Refer to the course page for information on how to apply for the course. VU takes care to ensure the accuracy of this unit information, but reserves the right to change or withdraw courses offered at any time. Please check that unit information is current with the Student Contact Centre.

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