Impact of Government Policies on Obesity

This assignment analyzes the role of government policies in addressing obesity. It examines how policies are implemented to minimize the prevalence of obesity and promote a healthier lifestyle for individuals. The document delves into various policy approaches, drawing upon research and examples to illustrate their effectiveness in reducing obesity rates.

Economic Policy and Health
Issues

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
Supply and demand analysis outlining factors with reference to change in price .....................3
TASK 2.................................................................................................................................................6
Main economic policies that the government can use to reduce obesity....................................6
CONCLUSION....................................................................................................................................9

INTRODUCTION
Obesity is an increasing phenomenon which gas emitted different diseases and also affected
people's lives in unhealthy way. The government has enacted several laws. Regulations, policies,
rules to make sure that people live a healthy life with no diseases. This report deals and inculcates
the obesity disease and also supply and demand curve analysis when a shift is occurred and price of
the commodity is changed (Ehrenberg and Smith, 2016). These shows that price is affected by
several factors and makes price fluctuates in many ways. Also, when demand decreases, supply
curve initiate change and vice-versa is observed. In respect of obesity, economic policies have been
enacted from time to time by the government. These policies make ensure that people understand
their importance of life and reduce consumption of highly saturated products. These inculcates
negatives aspects which government tries to diminish them at least possible manner.
TASK 1
Supply and demand analysis outlining factors with reference to change in price
The supply and demand of a particular commodity is derived by its price. It can be implied
that price is the mechanism which determines supply and demand of particular product. The price is
discovered and is based on the supply and demand (Bowen and Sosa, 2014). Goods will be sold
when the buyer and seller of the commodity meets in the market and they agree on the particular
price. When exchange occurs, the agreed price which correlates to buyer and seller is known as
equilibrium price.
When either of demand or supply shifts or change occurs in the market, then equilibrium
price will get affected and it will get changed.
The demand and supply curves are drawn in X and Y axis. The demand curve denotes
quantity demanded on x axis and supply curve denotes price of the commodity on y axis. For
normal goods, as the quantity demanded falls because the price rises and which shifts demand curve
from the left to right on the graph. Now, supply curve also initiates changes when demand curve is
shifted (Manacorda, Sánchez-Páramo, and Schady, 2010). The supply curve, on the other hand, has
an adverse effect on the price goes up and demand decreases as the curve move from right to the left
which is for luxury goods. This results in the market equilibrium which is market price and quantity
of the concerned commodity which is bread in the current situation.

Figure 1: Change in equilibrium price
(Source: Supply and Demand Curve for Price, 2017)
This figure 1 explains about the shift in demand and curve analysis of the equilibrium price
which is affected by demand and supply factors. This can be explained by an example like of bread
purchase. Throughout the year, season is moderate and no changes occurs in demand and supply
curve (Vivekananthan, Mishra, Ledwich, Li, 2014). However, when supply increases in the market,
more quality of products ranges are available for consumers of commodity. As if now, nothing is
observed related to increase in demand of the product, there will be a shift in demand curve to a
new equilibrium price. This will take place to clear off supplies of product in the market. This
reflects and changes occur and consumers will buy only when price of product is reduced. This will
initiate shift in demand and supply curves as consumer preferences will fluctuate.
The price is key factor which changes demand and supply curves. Apart from it, other
factors contribute to the shift of demand. They are income of customers, price of substitute product
available in the market , consumers taste and consumer preferences (Ruttan, and Thirtle, 2014). The
supply curve is affected by price of substitute products in the market and available technology
which competitors has in order to have efficiency in their production. These factors initiate shift in
demand and supply curve. These have following parameters which affect shifts in both curves, they
are:
 If there is increase in demand, then curve shifts to right which leads to increase in price
 If decrease in demand is observed in particular commodity, then demand curve shifts to left
which leads to price decreases
 If there is increase in supply, then supply curve shifts to right which leads to decrease in

price and quantity increases for product
 If there is increase in demand, then supply curve shifts to right side on graph in which price
increases and quantity decreases for product.
As such, if there is simultaneous increase in both demand and supply i.e. curves are shifted
to the right side, then new equilibrium can either of following:
1. Price decreases but quantity of product increases
2. Price remains same but quantity increases for the commodity
3. Both price and quantity increase for concern product
Figure 2: Shift in Demand
(Source: How Demand Curve Shifts, 2017)
Likewise, consumer preferences also change the demand and supply curve. Apart from the
above shifting of demand, no change is observed in supply curve. The effect on price results
shifting along the supply curve to a lower price in the graph. This reduction in supply curve affects
price when the situation of demand and supply attains normal situation. In order to gain revenue
from the situation, prices will be increased, producers will reduce and lower down the quantity of
the bread in the market so that they can earn an extra skim from the market in form of revenue
which optimises the production in the factory of the firm. Or they will find new sources of demand
to place new consumers who will purchase from the market to gain profits or a shift in demand
curve is obtained.

According to figure 2 which highlights the shifts in demand and supply curve. The changes
in supply and demand curve can occur in short as well as long run . It tends to influence the market
generally in the short run. The change in consumers preferences may have either short or long run
which may affect prices depending upon the commodity like bread. Consumer tastes also initiates
changes and shift in demand and supply curve (Shapiro, 2016). Producers need to study and analyse
the detailed report on it so that they can produce according to their tastes and which also ensures
optimum utilisation of resources is done with reference to quality standards. Consumers will be
attracted to quality of commodity which they prefer to eat in exchange of price. This regards to
company so that no wastage is occurred and resources are efficiently used and utilised in proficient
way by organisation in the survival in long run.
Another factor which influences shift in supply and demand curve is that of what type of
products company is offering for sale to its consumers. Basically, there are two types of goods
which are luxury and normal goods. Both have different impact on demand and curve which
automatically respond to consumer's tastes and their buying behaviour. Luxury goods enjoys short
run in shift in demand because consumers styles or preferences undergoes changes. While in
contrary to it, normal goods enjoy long term shift in demand curve as consumers do not change
their taste constantly or frequently. Bread is a normal good which consumer prefer to start of the
day. Hence, demand of it will continue in long and not be shifted to any other product.
Another factor which influences demand and supply curve shift is technology present in the
market. The aspect of shift in curve with respect to technology occurs, when demand does not
increase sufficiently in the prospective market to remove excess goods which were produced at
lower costs. The long run impact of technology on the market place is to cut down the prices of
products. This rapidly shifts demand and supply curve. This will attain balance or equilibrium only
when the prices are cut down to the extent and consumers will be ready to purchase it in the long
run. This will initiate consistent profit to the company and will enhance the resources in an optimal,
effectual and proficient manner which will increase the consumer's preferences to particular product
of the company and customer satisfaction rate will gradually increase. This doubles organisation's
reputation and dignity in the concern market.
TASK 2
Main economic policies that the government can use to reduce obesity
The commercial drivers of the obesity show robust sign of increase in diseases. Consumers
are buying more food, more cars and more machines but apart from this, obesity is increased. It is
showing that people are landing in pool of diseases which hinders their healthcare (Gortmaker and

et.al, 2011).When disease like obesity is increased too much extent, then government need to
intervene so that it benefits the masses from deteriorating healthy lives.
Obesity is sure a big health issue which need to solve as early as possible. Government has
enacted laws regarding to create awareness about healthy food and are securely increasing to reduce
obesogenic environment and promoting healthy eating and making people ware for doing physical
activities to remain healthy. The government policies regarding obesity is nothing but educating
masses about healthy food. In the present era, surveys are around the world data are showing
dangerous figures that obesity has been active in most countries which is an alarming issue to
people. Government is under double burden because on one hand infectious diseases rates are
increasing and on other hand rising rates of obesity, cardiovascular diseases and diabetes. Obesity
does not come along, it comes with other dangerous diseases. Diabetes is a great example of it.
Arthritis also come along with it.
People seek and enjoys fast food, and food which contain fatty, sweet, and salty foods, these
dramatically increases weights of the people and afterwards leads to dangerous disease. And reduce
the effort needed to work which technology provides us, all these leads to increase in rate of
diseases. Government has enacted and implemented some policies which are development of
clinical health guidelines, nutrition and ingredient labelling on packed foods, calories and fat
labelling on restaurants menus, (Jaime, and Lock, 2009). This is to increase the access and
financing of fresh fruits and vegetables which will provide hygiene to population and reduced
health problems including obesity. However, implementation of such policies are facing some sort
of resistance from the beverages industries.
The impact of obesity may be observed on children as they are eating fatty foods which
includes pizza, pasta and drink soft drinks which nothing but deteriorates their health. The studies
show that people have started eating pizzas and all stuff as their meals only and highly enriched
food with whole grains are observing a declining rate in the market. Saturated fat and added sugar
food stuff are gaining popularity to full extent.
The policies which United Kingdom has adopted are clinical, behavioural approaches. For
example, clinical guidelines on identification, and treatment of overweight adults were developed
and prescribed by the National Heart, Lung and Blood Institute in 1998 (Khan, and et.al, 2009).
These guidelines drew on reviews to develop principles of reducing weight. They are used by the
health practitioner who treats with overweight patients.
Another economic program imitated buy government is Weight Control Information
Network in 1994. They main idea and intend is to educate people so that they can live a healthy and
better life with no disease. Other programs have changed to not just revealing health diseases but

also educating people to overcome those diseases in their life to attain good and better life. One
such program was imitated to promote sports in national interest as the minister's call so that
healthy life can be achieved.
Team Nutrition had also launched an educational program in which students were asked to
make food choices and distinguishing between healthy and unhealthy foods to decrease the disease
rate in them. Educating children about the ill effects of consuming sugary drinks and urging them to
consume healthy beverages like fat and calorie free milk which maintains the balance in nutrition
level in the body and does not increase the weight and ensures healthy life (Malik, Willett, and Hu,
2013). Healthy food financing initiative announced in 2010 also aims to increase access to healthy
foods by attracting supermarkets to those areas which have high rate of diseases including obesity..
Another act was also announced in 2010, it was Healthy Hunger free kids act gave the authority to
regulate the availability and quality of foods sold to children.
Another act was passed that was Patient Protection and Affordable Act assessing the need to
have healthy practices and to connect them to have healthy lives in totality. Evidence recommends
that policy to improve and explaining people about getting physical exercises or riding bicycle that
may bring change in individual's health towards prosperity. Al though, mixed results have been
obtained by initiating this policy. Promotion of healthy foods through food awareness programs is
much reliable to people.. A study shows that primary determinants of weight gain were
consumption of unhealthy foods like sugary drinks and meats. These all are leading ea tables
responsible for weight gain.
Sugary drinks are also responsible for gaining weight. Beverages sugary drinks are in prime
list for taxation so that people do not purchase it. As a result, consumers will get lessor attracted to
it. The dangerous diseases which it emits are diabetes, hyper tension and metabolic syndrome
(Roberts, and Schlenker, 2009). Another study shows that ultimate effect on body weight depends
on the degree to which people takes high calorie beverages such as juice and whole milk which is
unhealthy foods which leads to obesity.
In the other country Children food and beverage advertising initiative was formed to restrict
and eliminate the marketing to small children which are below 12 years of age. A proposed set of
standards which contributes that foods made available to youths should contribute to a healthy diet
and have minimum level of fats. Obesity should be reduced to great extent collectively by
government and people. It is important for obesity prevention to make strict action to reduce the
consumption of unhealthy foods and beverages.
Government has to become role model of the people live a healthy and good life without
diseases. It is important for government to educate people and explains and suggests the audience

about the repercussions and dark side of the unhealthy life. Consumers also have to understand that
nothing is more important than life (Ruttan and Thirtle, 2014). They should take an initiative that
not to eat unhealthy foods which contains high calories and beverages which constitute overweight
of people. Fatty foods should not be eaten by the people and this will ensure decreasing rate of
diseases in particular nation. The use of public transport be reduced and walking to nearby places be
adopted and riding bicycle should be initiated to live healthy life.
CONCLUSION
Hereby we conclude that demand and supply curves play a vital role in initiating a price for
the commodity. It plays an important role so that buyer and seller meet in the market with an agreed
price. Both the curves are interdependent on each other. When one curve has recorded decline, other
curve will eventually get a hike with reference to consumers tastes, preferences, price of product,
price of substitute, price of input. Another part of particular deals with an alarming issue related to
healthcare which is of obesity. This disease is incrementing day by day. People are becoming victim
of it in almost every sphere of the world. It inculcates government policies and rules regarding it
and how it can be minimised and reduced to a great extent so that people live a good and healthy
life in totality. Various policies are enacted by government so that diseases can be reduced and
people live healthy life.

REFERENCES
Books and Journal
Bowen, W. G. and Sosa, J. A., 2014. Prospects for faculty in the arts and sciences: A study of
factors affecting demand and supply, 1987 to 2012. Princeton University Press.
Ehrenberg, R. G. and Smith, R. S., 2016. Modern labour economics: Theory and public policy.
Routledge.
Gortmaker, S. L. and et.al, 2011. Changing the future of obesity: science, policy, and action. The
Lancet. 378(9793). pp.838-847.
Jaime, P. C. and Lock, K., 2009. Do school based food and nutrition policies improve diet and
reduce obesity?. Preventive medicine. 48(1). pp.45-53.
Khan, L.K. and et.al, 2009. Recommended community strategies and measurements to prevent
obesity in the United States. Morbidity and Mortality Weekly Report: Recommendations and
Reports. 58(7). pp.1-29.
Malik, V. S., Willett, W. C. and Hu, F. B., 2013. Global obesity: trends, risk factors and policy
implications. Nature Reviews Endocrinology. 9(1). pp.13-27.
Manacorda, M., Sánchez-Páramo, C. and Schady, N., 2010. Changes in returns to education in Latin
America: The role of demand and supply of skills. ILR Review. 63(2). pp.307-326.
Roberts, M. J. and Schlenker, W., 2009. World supply and demand of food commodity calories.
American Journal of Agricultural Economics. 91(5). pp.1235-1242.
Ruttan, V. and Thirtle, C., 2014. The role of demand and supply in the generation and diffusion of
technical change (Vol. 21). Routledge.
Shapiro, M. D., 2016. Supply shocks in macroeconomics. (pp. 1-7). Palgrave Macmillan UK.
Vivekananthan, C., Mishra, Y., Ledwich, G. and Li, F., 2014. Demand response for residential
appliances via customer reward scheme. IEEE transactions on smart grid. 5(2). pp.809-820.
Online
How Supply and Demand Determine Commodities Market Prices. 2017. [Online]. Available
through: <http://futures.tradingcharts.com/learning/supply_and_demand.html>.