Economics for Business: Demand and Supply Analysis
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This article discusses the principles of demand and supply analysis in economics for businesses. It covers the factors affecting demand and supply, and how they influence the market equilibrium. It also explores the actions taken by the UK government to stabilize supply and demand during the COVID-19 pandemic.
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Economics for Business
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INTRODUCTION Economics is an analysis that demonstrates how people relate in terms of principles that include productsandservicesoutput,deliveryanduse.Itconcernsmanufacturedproductsand commodities on which companies operate. It examines how people, companies and countries decide how companies share their wealth (Ferreira Gregorio, Pié and Terceño, 2018). Economics is about addressing the needs of consumers in order to best use capital to achieve higher sales. Based on the principle of demand & supply to companies, economics for businesses is important. It involves micro- and macro-economic factors influencing consumer demand and supply. This article deals with the economy used by corporations. It involves subjects such as production and consumption curve, market and economic variables, price & demand balance, etc. In addition, it covers issues such as political interventions on food supplies and demand. TASK 1 Demand includes the quantity of products and services buyers are prepared to buy at varying prices. It is related to demand & prices for quantity (Paoloni and Lombardi, 2018). When price levels are reduced, demand for goods and service is increased and costs are reduced, the demand for goods is increased. For instance, if tea prices are over demand, the value of coffee is reduced, which tends to improve productivity and improving profits for companies. The transition in demand to a shift in the whole demand curve that results in a number of variables influencing and changing demand. The demand crap applies to different variables that influence demand for goods and services.
Change in Demand-The transition of demand that the whole demand curve moves to the right or to the left. D0 is shifted into a D1 or D2 transition of the initial demand curve (Shift in Demand. 2021). This may be due to improvements in the preferences, demographic changes, wage changes, replacement and supplement costs or shifts in future aspirations. In the sense of UK food production, the change in demand is created by variations in prices for the income component. Factors affecting demand: Price of the product-It indicates the reverse price relationship for goods & quantity for items that consumers want to buy (Hummel, Pfaff and Rost, 2018). These products are what consumers expect at a cheaper price. In UK food services, the pricing strategy influences demand for their products as the cost of food services increases the demand swings to the left but food prices decrease. The demand for food services generates greater results, helping companies to achieve greater revenue. Consumers’ income-Consumer income influencesthe market for goods in the UK for agricultural products and services. Consumer incomes will raise their consumption of the product for purchase; wages will decrease their consumption of goods and services for purchase. Revenue improves for this consumer to buy products of better quality for their request. The price for substitute goods-The price of alternatives influences demand for foodstuffs and services. For instance, tea prices rise and coffee is less expensive Customers will move for coffee that decreases tea demand. There are two common items that are eaten together. Bagels and cream cheese, for one. These are the kinds of praises for products. If the bagel price goes up, consumers' ability to consume fewer bagels is illustrated in the laws of demand. But shoppers would still choose to use less cream cheese if they want to lower bagels (since we typically use them together). A rise in bagels price also means that they choose less cream cheese for buying. In summary, as two products are added to each other, the cost for one product and the market for other products and services are in reverse relationships.
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Taste & preferences for customers-Goods demand is influenced by taste preferences for consumers. The taste of foodstuffs and services influences the appetite for the products/services of consumers. For instance, different clients do not use junk foods, so demand for such clients will vary. For spring, ice cream consumption is more likely to lower winter demand. Taste & desire have an effect on the appetite for products & services of our customers. The transition of quantity requires the step along the demand curve, causing price shifts. Change in Quantity demanded-A variation in the demanded quantity corresponds to the current demand curve motion, D0. This is a price transition that is due to a shift in the equilibrium price. The market movement creates in the sense of UK food services (Shift in Supply. 2021). Supply:Supply is the amount for services available for the demand for companies, employers and financial properties.
The supply adjustment is due to move along the supply curve, due to adjustments such as taxation, cost of production and technologies. Change in Supply-The supply change which indicates the complete supply curve changes to the left or right. The original S0 delivery curve moves to either S1 or S2 status (Movement in Supply. 2021). This is why conditions of demand, increases in resource costs, technological progress or improvements in taxes or regulations have occurred. In the UK food supply it influences its supply curve as regards the changes in cost. Factors affecting supply: Reduces costs for production-It indicates the availability of prices to companies. Costs are salaries, raw products, and sales that have an effect on the delivery of goods and services to corporations (Bogdanović, Vetráková and Filip, 2018). Technology:Technology advances impact products & services supply. Innovative buyers of products are companies that provide them with steps that increase their profitability. Innovation of technology continues to enhance productivity and to reduce costs. Factors prices-Factors for companies require materials, machinery and development aid devices. Changes in these rates have an effect on company supply.
Government polices-Financial activities impact goods and services supply. Changes in taxation impacting goods selling goods and resources for output, for example. Price for substitute goods-There are numerous substitutes for food products 7 utilities. As the price of tea increases, for instance, the supply of coffee will rise as consumers choose lower priced products that allow them more business viability. The transition in quantity is affected only by a price change that is induced by a step down the supply curve. Shift of supplied quantity: Shift in supply amount relates the new supply curve to movement S0. It is a price transition due to a shift in the cycle of production (Movement in Demand, 2021). It impacts supply for companies in the form of UK population. Equilibrium: The balancing price reveals the demand and supply quantities are the same. The balanced price reveals that market forces are the same, that market forces are the same. The balance of prices for agricultural products and services is 600 (Equilibrium for demand & supply. 2021). Where prices and quantities are identical, which indicate market balances for products
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and services (Chang, McAleer and Wong, 2018). For instance, equilibrium prices are seen for UK food companies when offer & demand are equal for their products & services. The supply curve reveals how much consumers would like to buy in sales & demand curve. Where the quantity of sellers and buyers is cross-sections, which indicates a balance. As demand decreases, consumption increases and supply decreases, balance changes for supplier & demand curve. PriceQuantity Demanded $1.00800 $1.20700 $1.40600 $1.60550 $1.80500 $2.00460 $2.20420 It reveals that prices are lower than demand, showing a reverse price & demand relationship. If the supply is lower than the market, the price is lower than the demand. PriceQuantity Supplied $1.00500 $1.20550 $1.40600 $1.60640 $1.80680 $2.00700 $2.20720
It indicates that the price is more supply, which makes a high price and supply relationship. If the market is less supply, the price is more supply. TASK 2 The UK Government is taking action to meet the government's supply side in 2020. The government has UK supply and demand policies that it takes to ensure its price stability. At COVID-19, countries have to deal with different problems in the purchase of goods and services. UK firms face a number of challenges that are resolved by the UK Government. They have different schemes, discounts, supply and demand stabilization money for goods or services companies (Nasution, Fauzi and Rini, 2019). It provides quotas, caps on prices, resources, taxes, fiscal policies, initiatives on deprivation, public healthcare etc. The Government would like to acknowledge the Committee on COVID-19 and food supply reports. Britain has an incredibly resilient food system and a food market that faces food supply instability. Food disturbance is largely due to industry in terms of experience, resources and leverage for preparation and responding to. This involves the creation, where possible, of alternate supply routes and distributors and other disruption-reduction steps. The Government supports some well system under which the food industry operates. This requires a wide and current dedication to helping industry grow and adapt to the current interruptions in the food supply chain. The Government reaction included proposing a number of key regulatory relief initiatives to help provide food for working hours, distribution periods, food labeling advice and competition legislation for key
sectors. The government has also partnered almost with retailers to help increase output. The difficulties driven by restrictions on travel (national or international frontier closures) and changing market demands are significant. Buyers cannot go to restaurants and eat their food at home because of the prohibitions. Moreover, since customers grab COVID-19 in shops, they do not want to go to grocery stores. The supply chain is not only influenced by manufacturers, suppliers and customers but also by labor-intensive food processing facilities. The output of COVID-19 positive and hesitant people to go to work thought that they might get sick at work recently of the epidemic, mainly in feed processors, has been diminished, halted or temporarily discontinued in many factories. There are many causes to create possible hotbeds for outbreaks in food production facilities. It is impossible to maintain a separation relationship inside food plants, since workers stand side by side on manufacturing plants during long shifts. Furthermore, speaking or shouting allows more droppings to go into the air due to loud excitement.In the individual aspect, the specifics of these measures are detailed below: Quotas: Penalties and quota duties from permanent duties in the UK allow some products used in domestic manufacturing to be imported duty free to the UK. Fines in the duties enable the importing into the United Kingdom of unlimited quantities, although Independent Tariff Quotas permit the import of limited quantities. In certain cases, tuna, olives and alcohols are included in the tariff limit in the USA. Tariff quotas also apply in some countries on imports (Nguyen, 2018). For instance, the United Kingdom restricts the imports of Australian beef, tobacco and peanuts. If a government wishes to shield domestic companies or to restrict an external force from regulating more than that for a product or service in its economy, it may set a quota on products of that region. The quota will restrict the overall value of the good or the amount of units which can be sold by the government to the government. It concerns consumers in the same group The United Kingdom government grants poor persons quotas. And it makes them less calories. Government steps are taken for poorer citizens, delivering 7 programs to consumers to reduce costs for food products. Poor families who couldn't buy products offer them goods of better quality. During the retail lock-up market, consumers face different problems for the quality of the product and services by government. It also offers quotas to firms by cutting rates in order to buy the item at lower prices, helping to reduce costs, helping clients to buy products at lower prices.
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Price controls: Price controls are the constitutionally required high or low rates for regulated items defined by the Government. They are typically used to manage the affordability of such commodities as a way of direct economic interference. Government limits on products most often — basic goods such as food or energy supplies — are applied by legislatures. Price caps that define high prices are price ceilings, while the price limits are price levels.Government demonstrates it avoids price inflation due to above balance and prevents price drops below balance, which tends to regulate costs.This strategy is used by UK governments to monitor reduction and raise prices, helping to stabilize prices that serve to support stable production and consumption. Under lockdown, manufacturers use a high price tactic that affects the buying power of the government for products to be delivered at lower costs & prices. Government transactions: Governments are aimed at facilitating, friendly, open, cost-effective and productive cooperation with individuals, enterprises, government officials, government departments and other governments. The government makes expenses for welfare of public and in the aspect of COVID different kinds of transaction of government can be useful to deal with consequences of COVID. The UK government allows firms to support them with funding that helps to increase the production and demand of goods. This is used by the UK Government for production and supply stabilization. The government sends funds to the manufacturer to buy products,givesconsumersmoneyforgoods.Governmentoffersprogramstomake disadvantaged consumers eat healthier foods. The UK administration is granting capital to the bank account clients. Taxation: Taxation not only provides for public goods and services but also for people and the environment as a central component of the social contract (Lubis and Muda, 2018). Responsible holding states promotes efficient tax collection control and, more generally, strong public finances management. Taxation must structure characteristic to at least three tiers of government: federal (Her Majesty's) revenue, transferred authorities and public governments. Taxation may also include compensation to the United Kingdom. The revenue of the Central Government comes mostly from taxation on wages, national insurance, value - added taxes, corporate taxes and fuel excise. The UK Government needs to pay lower tax rates to reduce output costs.It allows firms to purchase fewer products they buy at cheaper rates. Government considers tax rates to reduce them, which would contribute to price reductions. Regarding food products and
services, UK demand and supply problems for 2020, UK government production & supply policies that help to improve production and enhance profitability. CONCLUSION It has been inferred from the main report that economics is about using energy to improve the use of supply and demand. Economics is a research that demonstrates how people relate in terms of principles that include products and services output, delivery and use. Demand is about the readiness of consumers to purchase goods and services. Supply concerns services that companies continue to provide to their clients. Price & demand has a favorable relationship with reverse price & supply. Equilibrium is the junction of supply and demand that would match. There are variables that influence supply and demand, including price reform, technology, the appetite of consumers, replacement items, consumer profits, etc. These variables are changes and trends in the aggregate supply curve that helps to improve market efficiency and improves business profits.
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