Impact of Covid-19 on Demand and Supply in Retail Sector of UK

ECONOMICS FOR
BUISNESS

EXECUTIVE SUMMARY
Economic of business is related to study of organisation, environmental issue, financial
condition or market demand and supply of products and services. This report has included
information, facts and figure related to impact of Covid-19 on demand and supply in retail sector
of United Kingdom. It has also included key information related to the way firm operating in
retail sector have cope up with situation or circumstances in order to promote and sustain
business operation for longer time frame. Further it was seen that the government has a major
important role in the reviving the economy after the pandemic. For this the government of UK
has taken many different steps in order to protect retail spending of consumers. This included
many different steps like the retail subsidies, use of stimulus packages, industry specific
measures and many others.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Various factors that determined positive and negative shift in consumers demand for retail
good and services and the response of retail supply on market..................................................4
TASK 2............................................................................................................................................9
UK governmental and economic policies which assist in influencing consumer retail spending
in UK...........................................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business economics is the field of applied economics that helps to determine the outer
environment which are faces by the company. So there are different theories which are applied
by the business in order to determine the internal and external factor that affect the financial
performance of the company. In the same way, current study will help to determine different
factor hat shift the consumer demand supply and demand curve for retail goods in order to
response the retail supply on market. Further the study will provide the list of government
policies which will aid to reduce the retail spending and helps to recover the economy of the
country as well.
TASK 1
Various factors that determined positive and negative shift in consumers demand for retail good
and services and the response of retail supply on market
Law of demand and supply are major economic theories that are used to understand the
way shift in positive and negative in consumer demand and supply and response of retail supply
on market. Retail is one of the growing industries of United Kingdom as there are several large
organisations named as Tesco, ASDA and Sainsbury that offer varieties of products and services
to attract customers. Law of demand stated that while other factors remain constant, quantity
demand and price are inversely related that means with increase in price, demand of products and
services decreased. Price is most common factors that influence consumer decision to select
specific products or services in order to satisfy their respective needs. On the other hand, law o
supply state that quantity supplied is directly related to price where all other factors remain
constant i.e, quantity supplied increased with increase in price. As suppliers tries to earn more
profit margin by offering more products or services at time when they received high value at the
same time limit supply in case of low price. Covid-19 is one of the pandemic situations that have
negatively and positively impact demand and supply curves in retail sector of United Kingdom.
So, in short entire industry have to suffered due to uncertain events therefore several factors that
lead to fluctuation in demand and supply curve can be illustrated as follows:
Local demand factors: Due to Covid-19, people are less likely to spend money on non essential
items or products as they have less income or unsecure about their job. Local demand have
tremendously decrease due to reason of Covid-19 as they are less preferring to have outside