Economics for Business

Economics for Business

Executive Summary
The given project discusses about economics theory and its impact on government policies. It
also explains the unique changes in consumer retail spending that the UK economy has
experienced from in 2020. Report also discusses about adaptations by the UK government in
response to the change in UK consumer retail spending habits in 2020.

Introduction
The given project is covered into two tasks; 1 and 2. First task discusses about factors
responsible for shifting in demand and supply curve. The equilibrium shows relation between
demand and supply and how optimum price can be found by cross meeting of both curve.
Task 2 discusses about policies which can be adopted by UK government as economic policies
to aid economic recovery from loss of consumer retail spending. Some of the policies such as
poverty programmes, government transfers, retail subsidies, stimulus packages and Industry-
specific measures have been focused as main policies adopted by the government.

Task 1
Demand
Economists use the term demand to measure some large or managed customers who are willing
and ready to buy at all costs. Demand depends on requirements and needs - a client may choose
to distinguish between need and demand, but from a financial analyst's point of view they are
somewhat similar. Demand is also based on the ability to pay. As long as you can't afford it, you
don't have a strong interest (Lawrence, 2018).
A buyer who pays for a wholesale unit or special administration is called a price. The total
number of units purchased at that price is called the quantity demanded. An increase in the in
price of a good or service almost always decreases the quantity demanded. On the other hand, a
drop in costs will expand the required amount. At a time when the cost of gallons of gasoline is
rising, for example, people are looking for ways to reduce their consumption by consolidating
certain businesses, driving in a car or traveling a large area, getting on the weekend or escaping
closer to home. Finance experts remember this connection between costs and the amount
required by the law of interest. The law of interest recognizes that all the various factors
affecting interest (as will be clarified in the following model) are maintained.
A model from the gasoline market can be viewed as a chart or diagram. An interest plan is a
table showing the amount required at each cost. The cost of this position is calculated in dollars
per gallon of fuel. It is estimated that the required amount of gallons is high over time (for
example, daily or annually) and over a geographic area (such as state or country). An interest
curve shows the relationship between cost and the sum requested on a diagram such as Figure 1,
with the sum on the middle level and the cost per gallon on the straight pin (Lawrence, 2018).