Factors causing shifts in supply and demand and the impacts of these shifts

Factors causing shifts
in supply and demand
and the impacts of
these shifts

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Basic Supply and Demand Equilibrium:.....................................................................................5
Supply Curve shift to the Right...................................................................................................5
Supply curve shift to the Left:.....................................................................................................6
Demand curve shift to the Right:................................................................................................7
Demand curve shift to the Left:...................................................................................................8
Elastic Demand:..........................................................................................................................9
Inelastic Demand:......................................................................................................................10
Elastic Supply:...........................................................................................................................12
Inelastic Supply:........................................................................................................................12
CONCLUSION.............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The coronavirus pandemic has been a terrible period of time that is still ongoing. For
most enterprises in and throughout the world, the year 2020 was the worst. The UK economy
was seriously harmed, and the country's GDP fell to its lowest level in recent years. The advent
of the new Covid-19 forms in the second half of 2021 prompted economies all over the world to
impose rules on the marketplace. The government of the United Kingdom imposed restrictions
on marketplaces in and around the nation. The last-minute lockdown resulted in a significant
reduction in the supply of various items on the market, affecting product availability over the
Christmas season. Owing to the consequences of Brexit and the Covid-19 limits, the supply was
hampered due to a shortage of lorry drivers and staff in the business. Following the Brexit,
people were obliged to abandon their jobs and return to their home nations. Suppliers were
unable to satisfy the economy's demand due to a lack of resources to produce a variety of items.
Demand is an economic word that refers to the number of products and services that
consumers in a particular economy are willing and able to buy at a given price at any given
moment (Ahmad, and et.al., 2021). The idea of demand in economic theory is based on a
consumer's capacity to pay for a specific item. The price paid for certain goods and services is
referred to as the price, and the amount purchased by the consumer is referred to as the quantity
requested. For example, if the price of a water bottle grows, so does the demand for it. The law
of demand is the inverse connection between price and quantity requested.
The number of products and services produced by a producer and delivered at a specific
price is referred to as supply. The price is the price at which the amount is delivered by the
provider. That is, if the price of the product rises, the quantity provided for the commodity tends
to climb, as producers want to supply more at a higher price. When the market price of a ball pen
rises, for example, the producers increase their supply to maximise their income and profit at the
higher market price. The law of supply refers to the positive connection between price and
amount delivered.
The term "market equilibrium" refers to a state of market equilibrium in which demand
and supply for products and services are equal. The commodity's equilibrium price is the price at
which the company's goods and services will be sold and purchased. And the quantity refers to
the number of units that will be sold in the market. This connection is critical for an economy
since it aids in determining the price and quantity of commodities to be sold. The following

paper delves into the notion of market equilibrium and how it is established when demand and
supply for a commodity shift. Various elements are explored, including the elastic and inelastic
demand and supply. The interpretation is based on economic concerns that arose in the UK
market in the run-up to Christmas in 2021.
MAIN BODY
The UK faced several obstacles in the second and final quarters of 2021 as a result of the
negative effects of Brexit and the Covid-19 epidemic. During the Christmas holiday season,
demand for various products and commodities was at an all-time high. Due to increased demand
throughout the Christmas season, the availability of required and luxury products in the UK has
deteriorated. Due to the drop in output from these enterprises, the supply of turkeys and pigs was
extremely low. The primary causes for this drop have been observed as a result of the negative
effects of Brexit and Covid-19, including as lower output and involuntary unemployment as a
result of fewer foreign employees. The various market circumstances are explained here to help
you better grasp the situation in the United Kingdom.