Unique Changes in UK's Consumer Retail Expenditure during Pandemic

Economics for Business

Executive Summary
UK is a mixed market economy that works on partially controlled and owned market by
the government of a country. It is operated with the demand and supply forces of goods and
services in a market. Government intervention is function when there is any odd activity occurs
and when welfare of the people is on declining stake. It is a globalised economy which has
strong economic system and finacial structure with highly developed social market.
Due to coronavirus pandemic across the world has impacted drastically leading to global
economic crisis. In UK economy is facing major economic losses due to lockdown and various
imposed restrictions in markets by the government. The economy has experienced major shifts in
demand and supply of consumer goods. It is reflected with varied fluctuations in consumer
expenditure on retail goods and services. It has created both positive and negative change on the
economy of a country. It has resulted in increasing some types of retail spending while reducing
others. Due to this unique circumstance, country has been through distressing conditions
impacting the lives of citizens.

Table of Contents
INTRODUCTION...........................................................................................................................4
Unique changes occured in UK's consumer retail expenditure during pandamic-.....................4
Law of Demand...........................................................................................................................5
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Consumption of goods and services in an economy is essential for the growth and
development of markets. Economic condition of a country is influenced by the level of
consumption and expenditure in a market (Macroeconomics, 2017). Fluctuation in the aggregate
demand of consumer goods and servies leads to change in the overall economy of a country. The
market forces of demand and supply are two determinants of an economic growth and stability.
Thus, any fluctuations or deviations in consumer expenditure on retail goods and services
impacts the overall economy of a country. This can be experienced during coronavirus pandemic
leading to downfall in the economy. Due to this, UK has faced unique changes in consumer retail
spendings leading to economic crisis. The positive and negative shift in the consumer demand
for retail goods and services are discussed with the help of demand and supply analysis. Also,
various government measures and steps to stabilise the economy are discussed below.
MAIN BODY
Unique changes occured in UK's consumer retail expenditure during pandamic-
Due to corona virus pandemic, UK has faced major fluctuations in consumer retail
demand in various industries. It has seen positive and negative shifts in retail industry. Economy
runs on mixed system of capitalist and socialist in which government owns and controls some
businesses and market runs with free flow of demand and supply forces.
Demand and Supply function
Economics is refered as the study of social science with central aspects such as scarcity
and choice. It is based on the fact that resources are scarce and limited in a country. These
resources include land, labour, capital and entrepreneur are known as factor of production.
Therefore, due to scarcity of resources consumers have to make choices and includes opportunity
cost which is the next best alternative (ARUL BEC lectures, 2020). Thus, consumer demand gets
affected due to various factors based on limited resources leading to choice of alternatives. They
choose alternatives which provide maximum marginal utility and satisfaction. On the other side
consumer demand is met by supply of goods and services. Producers provide utility of money to
consumers and reaches consumer equilibrium. At the point of saturation, demand for a good is