Economics for Business

ECONOMICS FOR
BUSINESS

EXECUTIVE SUMMARY
In this report defining law of supply and law of demand of food market in UK sector.
Secondly Movement along with supply curve and demand curve of the food supply are showed.
Further, Shift in supply curve and demand curve by rightwards and leftward shift. Also,
Equilibrium level by change in price and quantity and brief concept of shortage and surplus in
demand and supply. At Last, economic policies of UK government that impact during Covid-19
and fails to meet requirements.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY. .................................................................................................................................4
Task 1...............................................................................................................................................4
Law of demand and Law of Supply.............................................................................................4
Movement along with supply.......................................................................................................5
Shift in supply curve....................................................................................................................5
Movement along with demand curve in food..............................................................................7
Shift in demand curve of food.....................................................................................................8
Equilibrium price and quantity..................................................................................................10
....................................................................................................................................................10
Task 2.............................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Demand and supply is the important concept of economics. The concept of supply refers
to total quantity supplied by the sellers in market to meet the demand of consumers. Sellers
increased their demand at a time of higher price to earn more of profits. On the other hand,
demand refers the interaction between Buyers and sellers. The quantity demand are changes
according to change in price of goods and service.
The quantity demand of UK food chain in different manner they are affected through
price and different factors that makes the demand and supply curve shift or movement along with
it. Equilibrium shift in quantity demand and quantity supply on the same curve. Further
economic principle are being also mentions and in different manner their intervention in supply
and demand of food.
MAIN BODY.
Task 1
Law of demand and Law of Supply
Law of supply shows that higher price of goods and leads to higher supply of goods in
market while all other factor remains constant. It states that suppliers are willing to supply more
at a high price and lead to suppliers increases their supply of food in market (Saleem, and et.al.,
2021). At higher price, suppliers want to earn profits by selling more goods and supplier
increased their quantity supply in market on higher price. But It also results in reduction of
quantity demand of goods in food market. However, quantity supply of food is high in food
market.
Law of demand The Law of demand shows that, increase in price of food leads to
reduction in demand while all other factor remain constant. It refers to relationship which shows
the higher price of food results in lower quantity demand by consumers. It has direct
relationship between quantity demand of food and price of food. Quantity Demand of food can
be change if there is a change in price of food products. The supply of UK food chain has being
changing and have high frequency of changes. Whereas, Consumer reduce their quantity demand
for foods if the products are avoidable and not comes in category of necessity goods (Zhang,
Duan, and Du, 2021). Consumer will consume only those goods that are necessary for living
I.e. wheat and rice. The variation in price of food products leads to directly impact on its quality
demand and quantity supply in market.