Economics for Business

Economics for Business

EXECUTIVE SUMMARY
Economics can be define as social science that consider production, distribution and
consumption of goods and services. It examine how government, bushinesses, nations and
individuals make decisions relating to allocation of resources. There are various factors which
influence the supply and demand of goods and services in many ways. This report is formulated,
in order to interpret the use of theories and economic principles which will study the impact of
COVID-19 on an economy. This report is further divided in two parts – Part 1 is associated with
shift in demand and supply curve due to change in prices along with the impact of COVI-19 in
maintaining the equilibrium point. Part 2 is consist of strategies that are formed to overcome
the negative impact of this pandemic.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Explanation regarding change of supply and demand curve......................................................4
Movement of supply curve..........................................................................................................4
Movements of demand curve. .....................................................................................................6
Explanation of equilibrium of quantity and price.......................................................................7
TASK 2 ...........................................................................................................................................8
Brief explanation regarding issue and problems UK government face within food sector of the
country and strategies or policies they use to overcome theses problems...................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business economics is field of applied economics as it studied the environmental, market
related, organisational as well as financial issues which are faced by the corporations (Ashraf,
2020) . This report is formed in order to define how theories and principles of economics are
helpful in evaluating the importance of supply and demand over the UK economy. In this
context, food sector of UK is selected for this report. This report also throw light on, how
COVID- 19 became the reason of shift in supply and demand curve. Further this report, also
involve all those policies and strategies that UK government implement in order to overcome the
loss that arise because of Corona virus pandemic.
TASK 1
Explanation regarding change of supply and demand curve.
Movement of supply curve
Supply: According to Krugman & Wells, supply is the fundamental concept of economics that
explains the total amount of goods and services that are available to customers. It is the ability
or willingness of producers to generate goods and services and then take them to market. Any
change in supply implies to shift (right or left) in relationship between price and quantity.