Economics for Business: Supply, Demand, and Market Equilibrium

Economics For
Business

Executive Summary
In case of UK which has market familiarized economy and this government has only
interact in marketer and the main aim is to welfare of society and shifting many situation prices
in market due to many reasons which cannot be relation with some other factors. In this report, it
includes developing their view of principles and movement in demand and supply which will
affect the food industry in UK. It can also consist of market failures and government
interventions for food supply and demand in food market only. Some situations which is adopted
to improve these situations and UK have maintained some interventions for the goal of short
term equilibrium to make firm food industry should be strong.

Table of Contents
Executive Summary ........................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Supply economic theory .............................................................................................................4
Economic theory of demand .......................................................................................................6
Market equilibrium .....................................................................................................................7
Shortages and surplus................................................................................................................10
TASK 2..........................................................................................................................................11
Market Failures .........................................................................................................................11
Policies which are government should be adopted to code failure of market ..........................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
The term business economics is field of those studies which is related to financial,
organizational and environmental issues by firms (Bates, Bradford and Jackson, 2018). Business
economics handles analysis of various cost which are involved in business and is a part of
decision making. It is important for business because each and every business have always desire
to minimize their costs and maximize its profits by economies of scale. To understand this
assessment the topic is UK food supply challenges in 2020 and it involved many factors which
will impacted food industry through Brexit and Covid-19. In this report, many topics have been
covered such as shifting supply and demand curves applied to UK food supply, market
equilibrium for shifting demand and supply curves, shortages and surplus, market failures and
issues which adopted government for food supply and demand.
TASK 1
Supply economic theory
With Krugman and Wells, supply consist of amount of quantity of goods that would be
offer to sell in market at given price (Bi, Davison and Smyrnios, 2017). If there is increase in
price of number of goods then a firm wish to supply also increase in firm. In market, various
factors can affect market supply and demand and it is relationship between price and quantities
supply. These factors will serve a positive relationship between price and quantity supplied in
forms of graphical presentation are as follows:
Movement in supply curve