Economic Problem of Scarcity and Allocation of Demand : Report
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Added on 2020-07-23
Economic Problem of Scarcity and Allocation of Demand : Report
Added on 2020-07-23
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BUSINESS ECONOMICS
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Economic problem of scarcity and demand resource allocation to manage economy..........11.2 Role of supply and demand in the economy and equilibrium for achieve objectives...........31.3 Importance of different market system ................................................................................41.4 Role of opportunity cost to determine how organisation can make decisions......................51.5 Elasticity of demand and its importance in market interaction ............................................6TASK 2 ...........................................................................................................................................62.1 Implications of pricing and corporate objectives on its operations.......................................62.2 How prices can be set in different market structure .............................................................62.3 Analysis how market structure and operational decisions could be affect its behaviour......72.4 How UK regulations affect to the market power of the business and how regulations affectto the market power and enterprise.............................................................................................8TASK 3............................................................................................................................................83.1 How structure of the UK economy change in 21st century and it affects to the businessenvironment of chosen enterprise...............................................................................................83.2 Tools for meeting macroeconomic policy.............................................................................93.3 Performances of UK economy in global market...................................................................93.4 How economic performance will create impact on Marriott hotel.....................................10TASK 4..........................................................................................................................................104.1 Theory of comparative advantages.....................................................................................104.2 Advantages and disadvantages of free trade.......................................................................104.3 Impact of emerging market economies for developed economies......................................114.4 Consequences of the recent domestic and global economic shock.....................................11CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................15
INTRODUCTIONIn respect to make effective functions and operations, there are several elements existsthat play important role for increasing profits and revenue. It is important to assess the futuredemand so that fund requirement can be assess in effective manner at workplace. Hence, it isimportant to identify objectives and growth of the nation (Jernigan, Noel and Lobstein, 2017).With this aspect, present report based on the Marriott hotel which develops several kinds ofoperations and functions such as accommodation, party booking, etc. In addition to this, they arealso deals to enhance different kinds of services in international areas to attract many customersfrom different places. For gaining insight knowledge of the company, present report coverseconomic problem of scarcity and allocation of demand that assists to manage country economy,furthermore, it includes prices that are setting in different areas of the market for accomplishcorporate objectives. In addition to this, it also focuses on the UK performances for ascertainresults in global market with special indicators. Along with this, report also analysis emergingeconomies that are developed for general aspects. TASK 11.1 Economic problem of scarcity and demand resource allocation to manage economyIn the UK, there are several issues and problems occurs that create impact on its functionsand operations. In this regard, due to limited resources, the country face many problems thatimpact negatively on its functions and operations. Hence, government also facing issue toallocate resources in different aspects. Along with this, UK also face problem due to scarcity:Unemployment: It is the major one issue of UK that create big impact on their functionsand operations. In respect to allocate resources, this element widely impact on the hotelindustry (Manzerolle and McGuigan, 2014). Therefore, Marriott high impacted by thiselement because there is lack of skilled employees which create major impact.1
Reduction in the economic growth: Due to low economic growth, the nation has alsoimpacted that create major issue to operate several functions and operations. As from last9 years, economic growth of the nation highly fluctuating so that it is the major elementwhich create impact on functions and operations (Bianchi and Andrews, 2015). 2Illustration 1: UK unemployment Source: (Unemployment in the UK 2012, 2012)
1.2 Role of supply and demand in the economy and equilibrium for achieve objectivesIn the nation, supply and demand are major element that create impact on functions andoperations of business. This is because, in UK equilibrium is the main issue that impact on theireffective results. In order to achieve goals and objectives, they have to understand demand ofseveral customers towards the products and services. As supply increasing with the price so thathigh profit will be earn from suppliers. It creates negative impact because high cost occurs atworkplace (Whiting and Williams, 2013). In order to enhance customer base Marriott requireimplement new things at workplace through they can accomplish desired results. In addition tothis, purchasing power also getting high so that values of the products also create effectivefunctioning at workplace. Along with this, low price of products and services creates severalbenefits to the cost that increasing maximum number of people at workplace. Increasing demandand supply place as per the prices that are curved upward and creates changes in the demand ofproducts (Killian and McManus, 2015). Along with this, demand curve also move from opposite side when the products priceshas been changed. Hence, it could be stated that value of money required to placed that create3Illustration 2: UK economic growthSource: (Pettinger, 2013)
effective results and position for equilibrium point. In this regard, profits and revenue will beincreasing at workplace so that goals and objectives will be accomplish in systematic aspect.Therefore, equal pricing determines by the people for consume products and services thatincrease benefits as equal opportunity cost. Hence, high price assists to increase supply of thecompany which develops target market and buyers also taking part to generate more money atworkplace. In respect to generate more money, profits and revenue will be increases atworkplace. With the help of more supply to develop the target market. 1.3 Importance of different market system In the market, different perspective exists that assists to accomplish desired goals andobjectives to operate several functions. In this context, it is important for demonstrates pricingwith production decisions (Watson, McCarthy and Rowley, 2013). As results, there are differentkinds of market system exists that develop with its pricing:Perfect competition: In this kind of market system, there are several areas determines inwhich large number of buyers and sellers exists who interact each other. It is veryeffective and crucial aspect of the market system in which both possess alternative optionto purchase product and sell to customer in creative aspect. Therefore, decision based onthe all businesses who exist in the market. For example, Marriott, Hilton, etc. With so4Illustration 3: Supply and demand equilibriumSource: (Market equilibrium, 2017)
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