Demand and Supply Equilibrium in UK during November and December

Situation of UK November and
December

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
1 A basic supply and demand equilibrium diagrams...................................................................2
2 Supply shifting to the right.......................................................................................................3
3 Supply to the left.......................................................................................................................4
4 Demand to the right..................................................................................................................5
5 Demand to the left....................................................................................................................6
6 Elastic supply............................................................................................................................7
7 Inelastic supply.........................................................................................................................8
8 Elastic demand..........................................................................................................................9
9 Inelastic demand.....................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The demand and supply of product can be affected by many factors so that it can change
rightwards and leftwards direction according to the market price (Arshed and Kalim, 2021). The
presents report is based on the situations of UK in the month November and December in which
there are many Christmas products are getting shortage because the supply of raw material are
comparative less. Also, report identifying the factor by which demand and supply are affected
and then applying the hand made diagram of different situation in the market. Further, study will
support the elasticity of the supply and demand of Christmas products with the help of presenting
diagrams.
MAIN BODY
1 A basic supply and demand equilibrium diagrams
Equilibrium in Demand & Supply Curve
The demand curve is showings relationship between price and quantity demanded on the
basis of given market. Also, supply curve are related to graphical representations which are helps
to provide correlations between cost of goods sold on the basis of given period. According to
case study it has been analysed that the demand of Christmas product are increasing in the year
2021 are increasing but the supply of raw materials are decreases. On the basis of present
diagram it has been analysed that in the diagram it shows the supply curve in which price will
appear in the left vertical axis and on the others hand supply of quantity is appeared on the
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horizontal axis. At the points of demand and supply curve are meet it will help to provide the
point of equilibrium in which quantity demanded and supply of the product are equal buts the
price of the product are constant at that situation (Brinca, Duarte and Faria-e-Castro, 2020).
However, it has been identified that there is inverse relationship for the price of good and supply
but when the price of the goods are increases whereas the demand are remained same. Also, it
affects the demand and supply equilibrium by decreasing the price and increasing the quantity of
product.
2 Supply shifting to the right
Right Shift in Supply
In the economy it has been described that there when the goods and services of the
products are change output or productions it affects the supply curve. When the market is
imbalance it leads the supply curve in right direction because the price of the product are
decreases on the basis of availability factors such as change in tax, weathers, consumers
reference etc (Bryan and Connor, 2018). The other reason are related to the change in non-price
factor such as increasing the number of seller in market, then the technology levels are increasing
in order to change by considering the different factors. On the basis of present case study it has
been analysed that at the time of Christmas there are increasing the demands of gifts product but
at the same time price are increasing just because pandemic. On the other hand, the demand of
medical products are increasing in the pandemics at that time there are more firms which are
offering the same product so the price of the products are comparatively less so the supply has
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