Food Crisis in UK: Understanding Supply and Demand

Business for
Economics

EXECUTIVE SUMMARY
Ever since COVID-19 pandemic have hit the World, all sorts of activities are seen
interrupted. Besides health of people is affected and deaths due to pandemic are seen
continuously rising, people all around the world have became very conscious about the manner
of living and habits they follow. A key safety protocol for fighting pandemic was suggested by
health experts is to maintain distance from each other and avoid frequent touches and gatherings.
Due to this reason governments around the world imposed Lockdown in their countries.
Lockdown simply means closing of borders of country and putting temporary shutdowns over
movement of people and business activities, so that distances could be maintained resulting in
containment of spread of virus. However, spread of virus went prolonged and countries kept
imposing Lockdown. Even after Lockdown was removed desired upsurge in business activities
was not seen, one due to remove was in instalments relaxing continuation of priority sectors first.
All these developments starting from halt in economic activities to closing of borders by United
kingdom itself, triggered food crisis in economy. United kingdom although have sufficient
domestic production of food products to meet domestic demand, but also relies over other
countries for essential supplies like meat and other products. But when borders were closed and
agricultural activities were suspended, it resulted into food scarcity and ultimately UK economy
went into food crisis.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Studying Supply curve...........................................................................................................2
Studying Demand curve.........................................................................................................6
Studying Equilibrium...........................................................................................................10
Explaining Shortages and Surplus........................................................................................10
TASK 2..........................................................................................................................................11
Economic Principles of Market Failure................................................................................11
Interventions of Government................................................................................................11
CONCLUSION..............................................................................................................................13

INTRODUCTION
Lock-down was a safety measure against spread of COVID-19 adopted in many
countries, also United Kingdom resulted in making economies of countries vulnerable.
Restricted trade economic activities and barred movements of goods and people together with
disrupted supplies across borders required initiatives of food relief at urgency (Aldaco and et.al.,
2020).
In this report, an analysis of food crisis occurred in UK as result of virus upsurge and lockdown
measures, is made. This begins from understanding basic principles of demand and supply in
relation to crisis of UK. Followed by, understanding market equilibrium and its disturbances,
effects relating to crisis. And, issues of shortages and surpluses to that of UK crisis are discussed.
Also principles of market failure and government interventions are helpful in getting knowledge
of issue holistically.
TASK 1
Problems faced by UK economy in terms of food crisis was not a result of numerous
factors that played role in scenario developed by COVID-19 pandemic and many aftermaths that
took place after that. First of al, as safety measure lockdown was imposed in country that put halt
on every economy activity in the country, agriculture also. At the same time to contain spread of
virus Government imposed closing borders also and sup[plies of food products from
neighbouring countries also became impossible. This was only the beginning of the stage where
food crisis were nurturing. Though at this stage well food scarcity in market was visible. Since
all such developments were happening suppliers in economy became more cautious and they
chose to opt for stock piling fearing future scarcity (Faour-Klingbeil and et.al., 2021). Also
whatever products were available were also being provided at higher prices and inflation got
triggered.
For developing a better insight over the matter it is important for one to have look at
basic principles of economy pertaining to demand and supply. How demand and supply in
economy acts automatically and how they are affected by different factors. It is also important to
understand to stabilise them, which is equilibrium in economy. Principles and standards of
economy are universal thus their help is useful to comprehend a situation from core. For this
purpose, report have taken support of economic principles of Krugman and Wells.
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