Economics for Business: Supply and Demand in the UK Food Industry during COVID-19

Economics for
Business

EXECUTIVE SUMMARY
The understanding of monetary cycle can be explained through Economics. The subject
uses demand and supply measures to determine the consumption of particular goods within the
economy. The demand and supply of goods are affected by various market aspects like fashion,
income, preferences. In the recent era, market especially food market is high affected leading to
decline in demand due to widespread pandemic of COVID- 19. The study is executed on
COVID- 19 showing the shifts of market which is affecting the market equilibrium. The report is
performed in two parts so that explanation is sheer to understand.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY..................................................................................................................................4
TASK 1............................................................................................................................................4
Supply Chain and movement of its Curve:............................................................................4
Demand Chain and movement of its Curve:..........................................................................7
The shifts in demand curve can be studied as under: ............................................................7
Demand curve affecting food industry of UK can be seen as: ..............................................8
Explain supply and demand principles applied to the UK food supply in 2020....................9
Explanation of equilibrium price and quantity, and how equilibrium shifts with supply and
demand curve shifts...............................................................................................................9
Explanation of shortage & surplus.......................................................................................10
TASK 2 .........................................................................................................................................10
Discuss and identify market failures and along with this explain UK government interventions
and economic policies that are made for supply and demand in food industry. .................10
The economic principle of market failure and government intervention in the supply and
demand of food-related goods in the UK economy in 2020................................................12
CONCLUSION ............................................................................................................................12
REFERNCES:...............................................................................................................................14
Books and Journals:.............................................................................................................14

INTRODUCTION
Economics is a social science technique which describes production factors, consumption
factors, distribution factors of existing goods and services. It caters how resources are procured
by respective organisations in order to carry operations. Business Economics is an extended
form of financial performances of organisation which facilitates the operations. Along with
studying the market related environmental issues it embraces the shortage of funds and raw
materials which hamper the production. The report studies theories and principles which affect
the food industry of UK (ARHAM and HATU 2020). It examines demand and supply factors
that has affected consumption and production in times of COVID- 19. The policies which has
been formulated looking to the adverse conditions of COVID- 19 by governing bodies is also
been explained in context of reducing the ill effects of harm caused by disastrous pandemic.
MAIN BODY
TASK 1
Demand and Supply of Food Industry of UK can be seen as a link between the quantity
of production that producers want to sell at a determined rate as compared to that of the prices on
which consumers want to purchase. This defines the setting of price of a respective product or
service and its usage. When they both are equal, economy develops situation of equilibrium.
Supply Chain and movement of its Curve:
Supply can be termed as flow of goods and services by effectively managing them, along
with raw materials. The curve of supply chain is graphical representation of association between
cost of goods and supply of the same. As per the Krugman & Wells theory it can be seen that
government works for developing the supply chain by taking appropriate measures. Due to this,
there are many factors that can bring shift in supply curve. The shifts are caused because of
change in price which is also due to several environmental factors. The curve either shifts on
right side or on left side (Krugman and Wells 2017).