Economics for Business: Impact of COVID-19 on Demand and Supply in the UK Food Sector

Economics for Business

EXECUTIVE SUMMERY
Economic is consider as subject which help in provides knowledge regarding with the
consumption, demand and supply of goods how principle use for running money cycle within
the economy. There will be many factors which impact of demand & Supply in many ways. To
understand the use of theories and principle of economic in order to measure impact of COVID-
19 pandemic, this report is formulated. It is divided into 2 parts. Part 1 is related with how
demand and supply curve sifts right or left due to affect of price or other factors as well as
impact of pandemic on calculating of equilibrium point. In other part, strategies formulate for
the purpose of overcome this problem is define is systematic manner.

Table of Contents
EXECUTIVE SUMMERY .............................................................................................................2
INTRODUCTION ..........................................................................................................................4
TASK 1 ...........................................................................................................................................4
Explanation regarding movement in supply curve. ..................................................................4
Movements of demand curve. .....................................................................................................6
Explanation of equilibrium of price & quantity. ........................................................................7
Explanation regarding with shortage & surplus in food sector. ..................................................8
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
CONCLISION ..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business economies consider as branch of economy which is developed for implement
theories of economics in practical business life. This report is formulated foe define how
theories and principle of economic useful in evaluate important of demand ad supply over the
economy of UK. For this purpose food sector of UK has been select. This report includes how
COVID- 19 directly positively or adversely become the reason of shifting of demand & supply
curve. It also includes the policies and strategies government of UK implemented for the purpose
of overcome loss arise due to Corona virus pandemic.
TASK 1
Explanation regarding movement in supply curve.
Supply: The term supply define as monetary value of products or service available to
customers. It is consider as essential element to run an economy as on the basis of supplying
require products , government able to fulfil needs and demand of public. As per the theory
developed by Krugman & Wells , their will be many factors which are the reason of shifting in
supply curve. Mainly price of products impact on changes in the shifts of curve. In order to
understand its relation law of supply principle is use, which are define below:
Situation when supply curve shift to right:
Impact of price: According to the principle which states in the books of Krugman & Wells ,
when the price of products has been increase then the supply curve eventfully shifts from left to
right (Easton, 2020).