Changes in Consumer Retail Spending in the UK Economy in 2020

Economics for Business

EXECUTIVE SUMMARY
It has been concluded that, changes within the size of population can influence the demand for
retail goods and services. This pandemic has led to unemployment and lower degree of income
levels. Government transfer is considered to be one of the effective measure which helps in
distributing the income and attain higher operational goals. When the price of the substitute
goods falls and the price the complementary rises then the demand curve shifts to the left. This
eventually has led to the decrease in the demand and shifts the demand curve to the left. .
Changes within the size of population can influence the demand for retail goods and services.
The economy of the UK in turn has experienced measurable degree of changes because of the
Coronavirus pandemic. It has been concluded that, Retail subsidies in turn is considered to be
highly significant because it helps in effectively recovering from the losses which has been faced
by the retail industry within UK. Stimulus package is referred to as a package of tax as well as
incentives which has been used by the government in UK in order to stimulate economy.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
TABLE OF CONTENTS.................................................................................................................3
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Using key economic theories, explain the significant unique changes in the consumer retail
spending that the UK economy has experienced in the year 2020.............................................1
TASK 2............................................................................................................................................5
Examining the key UK governmental as well as the economic policies which could be used in
order to influence the consumer retail spending habits in year 2020..........................................5
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business economics is considered to be as one of the field which has been applied within the
economics that has been studied within the organizational, financial, market related and the key
environmental issues which has been faced by the key corporations. This study will focus on
effectively using the demand and supply analysis. This study also focus on identifying the key
main factors which is useful in effectively determining the negative as well as positive shifts
which has been linked to the changes within the consumer demand for the retail services and
goods. This study will also focus on examining the key UK governmental as well as the
economic policies which could be used in order to influence the consumer retail spending within
UK. It is significant in determining the factual policy. This study mainly focuses on the key
fluctuations of the consumer spending associated with the goods and services which has
significant positive as well as negative impact within the economy. In the year 2020, coronavirus
has significantly impacted the consumer retail spending.
TASK 1
Using key economic theories, explain the significant unique changes in the consumer retail
spending that the UK economy has experienced in the year 2020.
Supply and demand in Economics in turn are considered to be significant as it is useful in
showing key relationship associated with the quantity of commodity which the producers wishes
to buy. It is considered to be as one of the key significant model associated with the price
determination which has been used within the economic theory. However, the price of the
commodity in turn is significantly determined by interaction associated with the supply and
demand within the market (Wathen, Marchal and Lind, 2017). However, the resulting price is
considered to be as equilibrium price and focuses on representing the agreement between
consumers and producers of the good. The supply and demand is considered to be as an
economic model associated with the price determination in the market. In the equilibrium
market, the quantity of the goods which has been supplied by producers mainly equals the
quantity which has been demanded by the consumers. Demand and supply theory helps in
improving the business performance and attain greater efficiency.
 UK population and demographics
Change in the composition of the population as well as the demographic in turn are likely to
result in the shift in the demand curve. Changes within the size of population can influence the
1