Economics for Business: Demand, Supply, Equilibrium, and Government

This report provides an overview of economics for business, focusing on the principles of demand and supply. It explains how various factors, such as price, consumer income, substitute goods, and consumer preferences, influence demand. The report also details factors affecting supply, including production costs, technology, and government policies. It explores market equilibrium, where supply and demand intersect, and examines government interventions, such as quotas and price controls, used to stabilize the market. The report uses the UK food market as a case study, analyzing the government's response to supply-side issues and the challenges faced during the COVID-19 pandemic. The analysis includes an examination of the government's strategies, including quotas, price controls, and other regulatory measures, to maintain price stability and address market disruptions. The report concludes by highlighting the complex interplay of economic factors and government actions in the context of the UK food market.

Economics for Business

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
TASK 2..........................................................................................................................................................9
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
Economics is an analysis that demonstrates how people relate in terms of principles that include
products and services output, delivery and use. It concerns manufactured products and
commodities on which companies operate. It examines how people, companies and countries
decide how companies share their wealth (Ferreira Gregorio, Pié and Terceño, 2018). Economics
is about addressing the needs of consumers in order to best use capital to achieve higher sales.
Based on the principle of demand & supply to companies, economics for businesses is important.
It involves micro- and macro-economic factors influencing consumer demand and supply. This
article deals with the economy used by corporations. It involves subjects such as production and
consumption curve, market and economic variables, price & demand balance, etc. In addition, it
covers issues such as political interventions on food supplies and demand.
TASK 1
Demand includes the quantity of products and services buyers are prepared to buy at varying
prices. It is related to demand & prices for quantity (Paoloni and Lombardi, 2018). When price
levels are reduced, demand for goods and service is increased and costs are reduced, the demand
for goods is increased. For instance, if tea prices are over demand, the value of coffee is reduced,
which tends to improve productivity and improving profits for companies.
The transition in demand to a shift in the whole demand curve that results in a number of
variables influencing and changing demand. The demand crap applies to different variables that
influence demand for goods and services.

Change in Demand- The transition of demand that the whole demand curve moves to the right
or to the left. D0 is shifted into a D1 or D2 transition of the initial demand curve (Shift in
Demand. 2021). This may be due to improvements in the preferences, demographic changes,
wage changes, replacement and supplement costs or shifts in future aspirations. In the sense of
UK food production, the change in demand is created by variations in prices for the income
component.
Factors affecting demand:
Price of the product- It indicates the reverse price relationship for goods & quantity for items
that consumers want to buy (Hummel, Pfaff and Rost, 2018). These products are what consumers
expect at a cheaper price. In UK food services, the pricing strategy influences demand for their
products as the cost of food services increases the demand swings to the left but food prices
decrease. The demand for food services generates greater results, helping companies to achieve
greater revenue.
Consumers’ income- Consumer income influences the market for goods in the UK for
agricultural products and services. Consumer incomes will raise their consumption of the product
for purchase; wages will decrease their consumption of goods and services for purchase.
Revenue improves for this consumer to buy products of better quality for their request.
The price for substitute goods- The price of alternatives influences demand for foodstuffs and
services. For instance, tea prices rise and coffee is less expensive Customers will move for coffee
that decreases tea demand.
There are two common items that are eaten together. Bagels and cream cheese, for one. These
are the kinds of praises for products. If the bagel price goes up, consumers' ability to consume
fewer bagels is illustrated in the laws of demand. But shoppers would still choose to use less
cream cheese if they want to lower bagels (since we typically use them together). A rise in bagels
price also means that they choose less cream cheese for buying. In summary, as two products are
added to each other, the cost for one product and the market for other products and services are
in reverse relationships.

Taste & preferences for customers- Goods demand is influenced by taste preferences for
consumers. The taste of foodstuffs and services influences the appetite for the products/services
of consumers. For instance, different clients do not use junk foods, so demand for such clients
will vary. For spring, ice cream consumption is more likely to lower winter demand. Taste &
desire have an effect on the appetite for products & services of our customers.
The transition of quantity requires the step along the demand curve, causing price shifts.
Change in Quantity demanded- A variation in the demanded quantity corresponds to the
current demand curve motion, D0. This is a price transition that is due to a shift in the
equilibrium price. The market movement creates in the sense of UK food services (Shift in
Supply. 2021).
Supply: Supply is the amount for services available for the demand for companies, employers
and financial properties.

The supply adjustment is due to move along the supply curve, due to adjustments such as
taxation, cost of production and technologies.
Change in Supply- The supply change which indicates the complete supply curve changes to the
left or right. The original S0 delivery curve moves to either S1 or S2 status (Movement in Supply.
2021). This is why conditions of demand, increases in resource costs, technological progress or
improvements in taxes or regulations have occurred. In the UK food supply it influences its
supply curve as regards the changes in cost.
Factors affecting supply:
Reduces costs for production- It indicates the availability of prices to companies. Costs are
salaries, raw products, and sales that have an effect on the delivery of goods and services to
corporations (Bogdanović, Vetráková and Filip, 2018).
Technology: Technology advances impact products & services supply. Innovative buyers of
products are companies that provide them with steps that increase their profitability. Innovation
of technology continues to enhance productivity and to reduce costs.
Factors prices- Factors for companies require materials, machinery and development aid
devices. Changes in these rates have an effect on company supply.

Government polices- Financial activities impact goods and services supply. Changes in taxation
impacting goods selling goods and resources for output, for example.
Price for substitute goods- There are numerous substitutes for food products 7 utilities. As the
price of tea increases, for instance, the supply of coffee will rise as consumers choose lower
priced products that allow them more business viability.
The transition in quantity is affected only by a price change that is induced by a step down the
supply curve.
Shift of supplied quantity: Shift in supply amount relates the new supply curve to movement S0.
It is a price transition due to a shift in the cycle of production (Movement in Demand, 2021). It
impacts supply for companies in the form of UK population.
Equilibrium: The balancing price reveals the demand and supply quantities are the same. The
balanced price reveals that market forces are the same, that market forces are the same. The
balance of prices for agricultural products and services is 600 (Equilibrium for demand & supply.
2021). Where prices and quantities are identical, which indicate market balances for products

and services (Chang, McAleer and Wong, 2018). For instance, equilibrium prices are seen for
UK food companies when offer & demand are equal for their products & services. The supply
curve reveals how much consumers would like to buy in sales & demand curve. Where the
quantity of sellers and buyers is cross-sections, which indicates a balance. As demand decreases,
consumption increases and supply decreases, balance changes for supplier & demand curve.
Price Quantity Demanded
$1.00 800
$1.20 700
$1.40 600
$1.60 550
$1.80 500
$2.00 460
$2.20 420
It reveals that prices are lower than demand, showing a reverse price & demand relationship. If
the supply is lower than the market, the price is lower than the demand.
Price Quantity Supplied
$1.00 500
$1.20 550
$1.40 600
$1.60 640
$1.80 680
$2.00 700
$2.20 720

It indicates that the price is more supply, which makes a high price and supply relationship. If the
market is less supply, the price is more supply.
TASK 2
The UK Government is taking action to meet the government's supply side in 2020. The
government has UK supply and demand policies that it takes to ensure its price stability. At
COVID-19, countries have to deal with different problems in the purchase of goods and services.
UK firms face a number of challenges that are resolved by the UK Government. They have
different schemes, discounts, supply and demand stabilization money for goods or services
companies (Nasution, Fauzi and Rini, 2019). It provides quotas, caps on prices, resources, taxes,
fiscal policies, initiatives on deprivation, public healthcare etc. The Government would like to
acknowledge the Committee on COVID-19 and food supply reports. Britain has an incredibly
resilient food system and a food market that faces food supply instability. Food disturbance is
largely due to industry in terms of experience, resources and leverage for preparation and
responding to. This involves the creation, where possible, of alternate supply routes and
distributors and other disruption-reduction steps. The Government supports some well system
under which the food industry operates. This requires a wide and current dedication to helping
industry grow and adapt to the current interruptions in the food supply chain. The Government
reaction included proposing a number of key regulatory relief initiatives to help provide food for
working hours, distribution periods, food labeling advice and competition legislation for key

sectors. The government has also partnered almost with retailers to help increase output. The
difficulties driven by restrictions on travel (national or international frontier closures) and
changing market demands are significant. Buyers cannot go to restaurants and eat their food at
home because of the prohibitions. Moreover, since customers grab COVID-19 in shops, they do
not want to go to grocery stores. The supply chain is not only influenced by manufacturers,
suppliers and customers but also by labor-intensive food processing facilities. The output of
COVID-19 positive and hesitant people to go to work thought that they might get sick at work
recently of the epidemic, mainly in feed processors, has been diminished, halted or temporarily
discontinued in many factories. There are many causes to create possible hotbeds for outbreaks
in food production facilities. It is impossible to maintain a separation relationship inside food
plants, since workers stand side by side on manufacturing plants during long shifts. Furthermore,
speaking or shouting allows more droppings to go into the air due to loud excitement. In the
individual aspect, the specifics of these measures are detailed below:
Quotas: Penalties and quota duties from permanent duties in the UK allow some products used in
domestic manufacturing to be imported duty free to the UK. Fines in the duties enable the
importing into the United Kingdom of unlimited quantities, although Independent Tariff Quotas
permit the import of limited quantities. In certain cases, tuna, olives and alcohols are included in
the tariff limit in the USA. Tariff quotas also apply in some countries on imports (Nguyen,
2018). For instance, the United Kingdom restricts the imports of Australian beef, tobacco and
peanuts. If a government wishes to shield domestic companies or to restrict an external force
from regulating more than that for a product or service in its economy, it may set a quota on
products of that region. The quota will restrict the overall value of the good or the amount of
units which can be sold by the government to the government. It concerns consumers in the same
group The United Kingdom government grants poor persons quotas. And it makes them less
calories. Government steps are taken for poorer citizens, delivering 7 programs to consumers to
reduce costs for food products. Poor families who couldn't buy products offer them goods of
better quality. During the retail lock-up market, consumers face different problems for the
quality of the product and services by government. It also offers quotas to firms by cutting rates
in order to buy the item at lower prices, helping to reduce costs, helping clients to buy products
at lower prices.

Price controls: Price controls are the constitutionally required high or low rates for regulated
items defined by the Government. They are typically used to manage the affordability of such
commodities as a way of direct economic interference. Government limits on products most
often — basic goods such as food or energy supplies — are applied by legislatures. Price caps
that define high prices are price ceilings, while the price limits are price levels. Government
demonstrates it avoids price inflation due to above balance and prevents price drops below
balance, which tends to regulate costs. This strategy is used by UK governments to monitor
reduction and raise prices, helping to stabilize prices that serve to support stable production and
consumption. Under lockdown, manufacturers use a high price tactic that affects the buying
power of the government for products to be delivered at lower costs & prices.
Government transactions: Governments are aimed at facilitating, friendly, open, cost-effective
and productive cooperation with individuals, enterprises, government officials, government
departments and other governments. The government makes expenses for welfare of public and
in the aspect of COVID different kinds of transaction of government can be useful to deal with
consequences of COVID. The UK government allows firms to support them with funding that
helps to increase the production and demand of goods. This is used by the UK Government for
production and supply stabilization. The government sends funds to the manufacturer to buy
products, gives consumers money for goods. Government offers programs to make
disadvantaged consumers eat healthier foods. The UK administration is granting capital to the
bank account clients.
Taxation: Taxation not only provides for public goods and services but also for people and the
environment as a central component of the social contract (Lubis and Muda, 2018). Responsible
holding states promotes efficient tax collection control and, more generally, strong public
finances management. Taxation must structure characteristic to at least three tiers of government:
federal (Her Majesty's) revenue, transferred authorities and public governments. Taxation may
also include compensation to the United Kingdom. The revenue of the Central Government
comes mostly from taxation on wages, national insurance, value - added taxes, corporate taxes
and fuel excise. The UK Government needs to pay lower tax rates to reduce output costs. It
allows firms to purchase fewer products they buy at cheaper rates. Government considers tax
rates to reduce them, which would contribute to price reductions. Regarding food products and

services, UK demand and supply problems for 2020, UK government production & supply
policies that help to improve production and enhance profitability.
CONCLUSION
It has been inferred from the main report that economics is about using energy to improve the
use of supply and demand. Economics is a research that demonstrates how people relate in terms
of principles that include products and services output, delivery and use. Demand is about the
readiness of consumers to purchase goods and services. Supply concerns services that companies
continue to provide to their clients. Price & demand has a favorable relationship with reverse
price & supply. Equilibrium is the junction of supply and demand that would match. There are
variables that influence supply and demand, including price reform, technology, the appetite of
consumers, replacement items, consumer profits, etc. These variables are changes and trends in
the aggregate supply curve that helps to improve market efficiency and improves business
profits.

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Shift in Supply. 2021. [Online]. Available through < https://courses.lumenlearning.com >
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