Fluctuations of Consumer Spending on Retail Products and Services

Economics for Business
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Executive Summary
In this report, it has been summarised about the fluctuations of consumer spending on retail
product and service in marketplace. Consideration of Supply-Chain demand factors in order to
determine the significant impact of economic condition of country. As per analysis, it has been
examined the impact on the retail business through consumer spending capacity while reducing
demand of retail business in global marketplace. However, it has been examined the significance
of consumers spending on retail goods and measurable change within UK economy condition or
situation.
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Discuss about the supply and demand analysis, identifying main factors in positive and
negative shift linked to change in consumer demand..................................................................3
TASK 2............................................................................................................................................8
Determine the Main UK governmental and economic policies that could be used to influence
consumer’s retail spending in UK with example.........................................................................8
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Economic of business is defined as field of applied economics that studies about the
financial organizational, market-related and environmental issues faced by corporations.
Business economics encompasses subject such a different way to represent the product factors,
distribution as well as consumption. This report is mainly focused on the fluctuations of
consumer spending on retail product and service so that they will significant way to impact of
economy in both positive as well as negative manner. Due to spread of COVID-19, it impacts on
the consumer spending capacity while reducing demand of retail business in global marketplace.
This documentation will describe about the importance of consumers spending on retail goods
and measurable change within UK economy condition or situation.
TASK 1
Discuss about the supply and demand analysis, identifying main factors in positive and negative
shift linked to change in consumer demand.
Supply Analysis
Supply is the willingness of seller to offer various kind of given quantity of good and services in
particular price or cost. In this way, it can be understand that supply and demand become useful
in explaining how price and quantity traded determined (Balleer, Link and Zorn, 2020).
Sometimes, external factors influencing the potential consumers and affect on the value of those
variables. Therefore, it will be captured the buyer’s behaviour in demand functions and
represented in the form of graphical supply or demand curve.
Due to COVID-19, producers are willing to sell their product for specified price as long as
the price or cost to produce an additional unit of goods. it follows that willingness to supply
goods in marketplace. it is also known as supply function, depends on the cost at which product
can be sold within particular price of cost.
By using Supply analysis, it is more difficult for retailer to understand the demand of
consumers. so as remembers to think of current economic condition and then try to supply good
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