Law of Supply and Demand in UK Food Market

ECONOMICS FOR
BUSINESS

EXECUTIVE SUMMARY
This report shows the law of supply and law of demand of food in UK market. Movement
along with demand curve and supply curve of the food supply. Shift in supply curve and demand
curve by leftward and rightwards supply and demand of food products. Further, Equilibrium
level which leads to change in quantity and change in price with few concepts of shortage and
surplus in demand and supply of food chain. Lastly, economic policies of UK government that
affect during Covid-19 pandemic and unable to meet the demand and supply of food chain in
UK market.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Task 1...............................................................................................................................................4
Movement in supply curve...........................................................................................................5
Shift in supply curve....................................................................................................................6
Movement along with demand curve...........................................................................................7
Shift in demand curve..................................................................................................................8
Equilibrium price and quantity....................................................................................................9
Task 2.............................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Demand and supply are the two factors of economic which refers to market demand and
supply of goods to fulfil the need and wants of consumers. Supply shows the relation between
price and quantity supplied by each supplier in market. Whereas, demand refers to consumers
needs and wants that are demanded by consumers at a certain point and there is change in
demand by consumers if there is change in price.
In this report, it is being discussed that the quantity demand of supply of UK food chain
and in different manner they are affected with food price and other factors like technology,
income, increase in price of substitute goods that results in shift or movement in quality demand
and quantity supply curve. Further, Equilibrium point of food price and their quantity and how
equilibrium make shift in demand curve and supply curve. Lastly, few economic principles are
also mentioned with their participation in demand and supply in food market related goods is
explained with examples.
MAIN BODY.
Task 1
Law of demand It shows that, when there is an increase in price of food then it shows
reduction in quantity demanded by consumers while other factor remain constant. It makes an
opposite relationship between price and demand of product. Higher price of goods leads to
decrease in quantity demand by consumers in market while if there is decrease in price of
product it shows high demand of goods by consumers in market It shows direct relationship
between price of goods and quantity demand of food. Quantity Demand of goods are seems to be
change if there is change in price of goods in market (Nakat, and Bou-Mitri, 2020). The UK
food chain supply market is being dynamic with high frequency. Whereas, Consumer decrease
demand of unnecessary food which can be avoidable in nature like burger and pizza. But demand
for necessity goods will not be change as they are essential for living and being increased with
time by time.
Law of supply leads to higher supply of goods in market at a time of high price of goods
in market sector whereas, other factor are being constant at that time. It shows that suppliers are
willingly to supply more goods in market at a higher price and to earn more revenue from it. In
high market condition higher price are charged from the consumers by food supplier to earn high
revenue by increasing the market supplies of products. But after certain point of price charging,