Economics for Business: Impact of Demand and Supply on UK Economy

Economics for business

EXECUTIVE SUMMARY
Economics is explained as understanding about economy and different aspects of economy
which contributes in nation development and help in development of their people. There are
many factors which affects nation economy such as consumption of goods, demand and supply
and flow of money in economy. This report provides information about impact of demand and
supply on economy and what different factors affect demand and supply of nation. This report
includes information about effect of COVID-19 on UK economy and what other different
economic factors are affected by pandemic. At last this report concludes about importance of
effective economic policies in order to boost and develop economy.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Supply economic theory .............................................................................................................4
Demand economic theory............................................................................................................6
Market equilibrium......................................................................................................................7
Shortage and supply.....................................................................................................................9
TASK 2..........................................................................................................................................10
Issue and problems faced by UK government in food sector of country...................................10
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Economics is study of procurement and efficient allocation of scarce resources in the
concerned nation and under micro-environmental study demand and supply helps in interact in
industry to determine the equilibrium quantities. In this report the study of economics helps in
identify the internal and external factors that are managed by market forces developed by the
government by intervention. This report aims to explore the market interaction in the food
industry of the UK and they it impact the factors has undertaken such as Brexit, Covid-19. These
factors used to impact the economy and will lead to certain imbalances in the market and what
are the steps that were taken by respective government is being discuss in this report. Managing
the different factors has also impact the economy ans it should be properly control and identify
by the government to manage the social situation.
TASK 1
Supply economic theory
According to the Krugman and Wells, supply in market forces is used to relates with the
producer who used to produce goods and services and ready to supply those commodities on the
specific prices in the market. In the normal market conditions, sellers are willing to supply more
goods at high price and that indicate the positive relationship between the price and quantities
that are supplied. This kind of behaviour is shown in supply curve that is graphical representation
of the relationship between the price and supply is shown in upward slope.
Movement along supply curve