Factors Affecting Supply and Demand in UK Food Sector

Economics for Business

EXECUTIVE SUMMERY
Business economics is branch of economy which is used for applying theories of
economics in practical business life. This report is formulated to define factors which become
the reason of shifting or movement of demand as well as supply curve as well as how
government select equilibrium point. In the second part, relevant strategies which government of
UK apply for control the loss arise due to COVID -19 pandemic, these things are define in
systematic manner.

Table of Contents
EXECUTIVE SUMMERY..............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Explanation regarding factors which becomes the reason of movement in supply curve..........4
Movement in demand curve.........................................................................................................6
Equilibrium of price & quantity...................................................................................................8
Shortage & surplus in food sector................................................................................................9
TASK 2............................................................................................................................................9
Explanation regarding problems and issue food sector of UK face due to COVID – 19
pandemic strategies government of UK apply to overcome issue...............................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business economics, is part of economies which useful in determine how theories of
economise useful in practical life and how these theories and model implement and affect
running cycle of an economy. In order to understand relevance of concept of Krugman &
Wells's economics, this report is formulated. In this report, law of supply as well as demand is
define and factor or element which become reason of shifting of demand and supply curve is also
determine. As COVID -19 directly impacted towards goods and service of food sector. This
report also includes, impact of this pandemic and issue government of UK face due to Corona
Virus as well as how government deal in order to control loss arise due to the COVID – 19
pandemic.
TASK 1
Explanation regarding factors which becomes the reason of movement in supply curve.
Supply:This term states quantity of particular goods and services which suppler or
producers willing to produces or sell within the market at specific price and given time period. In
order to run business cycle in effective manner supply play vital role, there are many factor
which related and effect supply. According to Krugman & Wells, in order to identify changes
in supply, curve is formulated which useful to define changes in supply within specific time
period. Theses are define below:
Situation when supply curve shift to right:
Price of food: Prices are directly related with the changes in supply curve according to
Krugman & Wells, when the price of specific product decrease then supply of these goods also
decrease and vice versa. Supply curve in this case shift to right as their will be positive relation
between demand & supply. Price of sea food, soft drinks, olives & tinned fish , meat, milk item
has been raise due to the increase in prices, the supply of these factors also increases. As
customers are willing to use healthy food thus demand of these item have been increase which
become result in shifting of supply curve (Gaspar, 2020).