Economics for Business Executive Summary: UK Market Analysis

This report provides an executive summary of the UK market from an economics perspective, focusing on the impact of the COVID-19 pandemic. It examines the UK's economic structure, which is characterized by a centralized design and a marketplace regulated by the government. The report delves into the effects of the pandemic on the UK economy, including shifts in demand, consumer purchases, and the retail sector. It analyzes the interplay of supply and demand, factors influencing the retail sector, and the impact on incomes and jobs. The report also discusses government interventions, such as price controls and market floors, and concludes by highlighting the significant changes and challenges faced by the UK market. The report also covers the law of supply and demand, price equilibrium, and the influence of variables on the retail sector. It further explores local demand factors, complementary and substitute goods, and the impact on incomes and jobs within the context of the pandemic.

Economics for Business

Executive Summary
Britain is a centralized design system which functions on a marketplace that perhaps the
government of a nation is partly regulated and run by. It operates for both consumers and
suppliers of goods and services in the market. Regulation from the authorities is effective when
there is an unprecedented event and human wellbeing is at a deteriorating risk. It is a globally
connected international economy with a strong capitalist system, a financial architecture and a
deeply interconnected social setting. As a part of the worldwide coronary virus outbreak, the
global economic downturn has had a dramatic effect. The UK economy has suffered significant
economic problems as a result of the closure and various state-imposed industry restrictions. The
economy has undergone major shifts in demand and in the exchange of goods. This is mirrored
in the varying differences in consumer purchases on supermarket products. This had produced
both positive and negative changes in the nation's infrastructure. Some forms of customer sales
have been expanded, while others have been limited. Owing to this extraordinary situation, the
country has been afflicted by distressing situations impacting the lives of its inhabitants.

Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Task 1...........................................................................................................................................4
Task 2...........................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Customer expenditure in the sector is critical for the growth and growth of the economy. The
economic condition of a country is determined by the amount of product and consumer
purchasing. Uncertainty in the economic development of products and services is leading to a
change in global economy of the country (Draijer, 2020). The consumer force of production and
consumption are two formative forces for economic growth and stability. Therefore any
fluctuations or differences in customer demand on retail products get an effect on the particular
profitability. country overall. This can be observed during a coronary virus outbreak that leads to
a global economic slowdown. As a consequence, the United Kingdom has experienced various
racial changes in market retail demand, contributing to an economic contraction. The favourable
and unfavourable shift in competitive pressure for retail goods and services is discussed by
funding for studies into output and use.
MAIN BODY
Task 1
Over the epidemic, specific shifts emerged in UK market retail sales—
As a consequence of the spread of the corona virus, the UK has experienced significant
variations in commercial market prices in different economies. In the retail sector, strong and
harmful developments have arisen. The market is governed by a hybrid market and consumption
system where certain firms are owned and regulated by law and the equal allocation of supply
and demand powers on the economy is controlled and regulated by law.
Demand and Supply function
Economic policy, with core aspects including such abundance and preference, is tied to the
department of economy. It includes the fact that a nation's resources are limited and limited.
These resources such as land, manpower, capital and an investor considered to be a factor of
growth (Bakaev, 2020). As a consequence, due to lack of resources, customers must make
choices that require the opportunity cost, which is the next best alternative. As a consequence,
the customer's demand is determined by various factors, based on the finite resources, which lead
to the alternative. They prefer options for an optimal marginal profit and fulfilment. On the other
side, the availability of goods and services matches consumer demand. In order to attain market
equilibrium, manufacturers provide consumers with the benefit of money. At the equilibrium

point, the demand for the product is built, and its production contributes to the efficient use of
resources. Different economies exist, like fully open, dominance, oligarchy, which have an effect
on the operation of the economy. It needs a variety of buyers and suppliers that lead to intense
rivalry. While it has great competitors in the industry which has a wide network of vendors of
similar products. Consumers have a variety of choices that help them to choose the best answer.
There are separate laws concerning the market in which it exists. They're-
Law of Demand
It specifies in that law that other considerations are negatively directly proportional over period,
including the normal cost and availability of goods and services required. This is one of the
underlying principles under which the rise in costs corresponds to a decline in the incidence of
required commodities and reverses verse (About Law of Demand in UK 2020). It focuses on
standard economic considerations, where even the specific functions are carried out on the basis
of financial modification, separated by the competition intensifies requested. This indicates a
negative association between the relationship between price and quantity needed because of a
shortage of financial resources or the property of a person’s disposable income. It is shown in the
graph of the downward slope.
Law of Supply
As all other variables are constant, it is defined in that law that they also have a direct relation
with the money supply provided in the form. The quantity supplied is the quantity of products
and services which are required or made available for purchase on the marketplace. This
indicates that there is still a remarkable difference between commodity demand and availability.
This adds to the supermarket's upwards and the downward trend in the sum offered. It focuses on
segments and sub markets whereby individual commodity output is calculated on the
marketplace.
Price Equilibrium
The supply curve is overlapped at a point along this equilibrium price. This phase is known the
balance of the user. It is a condition in which production and an item's production are equal to
that of a producer. It is named the volumes equilibrium when the fixed is compared to the
quantities provided. It's also called demand balancing at a value at which commodity prices align
a commodity (About Price Equilibrium in UK 2020). Changes in demand and availability of
goods are influenced because of the various factors open to the consumer. These parameters

often adjust the position of the cost and amount ordered. In the case of a decrease in output, it
moves from bottom to top. In the case of a decline in the output of a material, it moves from the
top to the bottom.
Thus the previous section laws of the economy help to determine the market trends of the field. It
can be achieved by integrating or weighing aggregates for measurement at a macro scale. What
does blended production and consumption, market supply, industrial balancing, etc. In the real
world, they come together to create better choices and to devise economic policies and proposals.
Significant variables that dictate positively and negatively improvements in the retail sector
Owing to the catastrophe of the epidemic, the Great Britain has endured big crises in a variety of
industries. The shopping sector has been struck by a shutdown and the state has placed controls
(About variables that dictate the retail sector UK 2020). As a consequence, the retail sector has
undergone drastic shifts in different markets, contributing to a blockage in production and a
complete lock-down post-pandemic scenario. This has contributed to both favourable and
disappointing effects on the retail industry. The following are the main factors that affect retail
sector demand in the United Kingdom.
Local demand factors
Company forces, like production and consumption, are prone to competition on the UK
economy. This is a limit to whom it is possible to combine all powers, and the ceiling is fixed at
the rate in which the buyer is permitted to spend his cash at his discretion on a specific product
(About Local demand factors in UK, 2020). There'd been a precarious lockdown scenario at the
period of both the COVID-19 epidemic wherein citizens were trapped in their homes there was

no clarity about both the prospects of the financial state of the world. As consequences of the
shutdown, the supply of inputs has had a significant effect and as a measure the branches of the
business are being stopped and a substantial part of the secondary and main sector i.e. has also
been stopped. These units were seriously disrupted, leaving the amount distributed absolutely
straight on the sector. The global economy was the greatest force in this period of the epidemic.
Because of the many preventive measures taken by the Authorities, residents of the country
won't have access to the public field on a regular basis. The general public too was not interested
in going to the supermarket because they were fearful of coronary disease. Both of these trends
have also led to a rise in the sale of products and services through the online market. Objects,
like face masks, disinfectants, etc., have been included in the list of essential items. Item
holdings such as toilet paper, grocery stores, antibacterial wipes have been reported which have
culminated in a variety of retailers introducing capping restrictions on a variety of stuff.
Complimentary and substitute goods
There are two types of items to be used or used, and both are alternatives and associated
commodities. Substitutes apply to other services that are provided which may be used or that
might work the same way for the actual brand. These replacements have also seen to have a
make a good decision. To clarify this, there are a range of discount stores on the sector. All of
these brands have the same purpose and can be easily modified by the user (About Impact on
incomes and changes in jobs, 2020). But at the other hand, complementary products may be
described as those that are often used. If one of the products is unavailable, the other element
will not be able to perform its purpose. For example, the pasta and the liquids and suppliers
required to produce the pasta. If one item is not available then the item will not be eliminated in

order to fulfil its purpose. In the latter example, it is quite clear that there is a rise in the general
demand for commodities. During the corona virus age, improvements in needs and market
became very noticeable on the UK market. For example, public goods with various names have a
dynamic demand side, while they are supplementary to essential products. People were able to
buy any and all of them and out concern of price shortages and even for semi, it shows tough
competition in online shopping habits for people had a lot of free time that they used to review a
few options before they chose the ultimate one. Market segments in need such as supermarkets,
had hoarding as described above, while for non-essentials, they see little difference than the
usual nature of the market.
Impact on incomes and changes in jobs:
The effect of financial is an increase in wages for products, which changes as a result of the
change in the purchaser's buying power resulting from the incomes (About Impact on incomes
and changes in jobs, 2020). In the economy, as money is poured into the wealth process, it is
believed that one person's expense is the income of some other entity. For example, when buyers
shop for any product, they pay for that service, which results in the income of the retailers.
Subsequently, dealers may become customers by purchasing goods from another person.
Purchasing limits, subsidies and other government intervention
There is no active involvement in the business of UK public officials and their forces on regular
business days. Instead they are involved in the application of price controls on only such
products and services. It will keep making these things affordable to the general public. This
entire process is carried out in order to safeguard the general interests of the public on a large
scale. This process is refers to as the set budget which leads to a number of shortfalls, like
efficient utilization of wealth and wastage of resources and the supply of goods of poor quality,
etc. Other way too effectively to get interested in the business is by market flooring. This
approach is just the opposite of the mechanism mentioned above, as it involves fixing the costs
of the commodity and services at a cost and companies are not able to sell the goods at a cheaper
price than the negotiated price. It is the government's duty to track the pace of economic
development such there is no uncertainty in the economic landscape of the state. Strategies like
work release have been introduced with the key goal of protecting the livelihood of millions of
people who are essential to the revival of demand on the UK economy.

Task 2
UK's core policy and fiscal strategies to strengthen the economy from the collapse of domestic
retail sales.
The United Kingdom Government has taken a variety of steps to encourage economic prosperity
and to bring peace to different functions. The United Kingdom operates on a dynamic economic
base with social functions that lead to policy interventions like legislative frameworks and efforts
to foster economic development. This helps to impact industry conditions by changing macro-
economic factors such as taxation rates, banking rate changes, retail operations, etc. The
environmental effects of the corona virus have prompted the policy to strengthen its economic
position in a variety of ways. That needs discounted retail products, rapid turnaround expenditure
initiatives and measures for the retail industry, etc. As the retail industry has experienced make
large which have an impact on the economy on the whole the demand for various products has
decreased. This included luxury products, like accessories, fashionable garments, home decor,
etc., durable household items, like kitchenware, plastics and other non-recurring objects. It also
expanded the use of goods for daily use, which are important for the lives of people. The
competition for the necessary products in the food retail sector has increased. The Policy has
used policies to preserve the flow of spending in the market.
The foregoing are the strategies and measures introduced by the British Government for
economic prosperity and development, contributing to a rise in consumer purchasing.
Poverty program
This is a programme introduced by the United Kingdom Government to minimise poverty in
communities and to offer basic services to people. It is government sector requires the right
decisions and launches an aggressive agenda that is crucial to eliminating poverty in society.
Since the crucial condition of COVID 19, many individuals are affected by life and have effects
on the financial system of the United Kingdom (About Poverty program, 2020). Which has put
unnecessary strain or responsibility on people to fully fulfil minimum standards and resources?
The Office for Fiscal Responsibility has predicted that there is a chance that unemployment will
grow by 9.1% in 2020. In order to overcome the problems economically and effectively, the
United Kingdom Administration's poverty agenda will seek to solve poverty issues as well as
reduce negative impacts on the COVID 19 issue and cause inflation.
Moves from the states and discounts

As per the administration's programme, it was agreed that an additional £ 16 billion would be
available to the public of Scotland, Britain and Wales to support their industries. These were
decided, within the context of discretionary loans and grants that £ 1.1 billion must be allocated
to business authorities with the purpose of delivering industry support to rebound from financial
distress or crisis. For a good business operation, small companies can gain up to GBP 3000 a
quarter.
Measures unique to the sector
The UK government has a variety of projects designed to protect different sectors in the sector
and their employees. Furlough is one of the main systems announced by the policy (About
Measures unique to the sector, 2020). This policy has been established to discourage a large
amount of workers from becoming pushed off in terms of wages and prospects. Half of the
wages of the workers in this programme will be assessed in this regard by the policy and the
remainder will actually be paying on their own. In this middle path, employers and employees
will be remunerated.
Stimulus packages
In terms of balancing market trends, steps have been taken to improve consumer needs by the
UK Government. This is done by investing GBP 330 billion from retail businesses and others
unable to live in a climate of depression. Financial support amounting to EUR 20 billion has
been awarded by the Policy as a disaster relief package to help businesses. By comparison, the
government allowed homeowners to borrow loans by releasing or lowering the requirements. In
certain cases, federal changes had to be accepted for the IR35 rules, and the salary labour
regulations were halted (About Stimulus packages, 2020). The government is also offering fiscal
measures that will help boost the economy as a whole. It focused on work opportunities to save
citizens from job losses, which again lead to improved labour appetite for a stable market.
CONCLUSION
From the above-mentioned article, it can be inferred that customer spending influences the
industry overall. The economy is defined by the administration's production and spending and
the nation's people. Household incomes, electricity prices, credit policies as well as other
variables, etc., are factors that can influence market mechanisms. Due to the epidemic, the
industry has had a huge influence on the operation of a business due to the lockout of terms and
conditions. These problems have led to a deterioration of the system through output and a decline

in energy demand. Products that are necessary are consumed, causing an increase in the
consumer's market supply of essential goods. As a result, some supermarket goods in the United
Kingdom have seen major repercussions due to unclear buyers and sellers. For this government,
substantial steps are being taken to encourage the stabilization of the UK economy and to
influence consumer appetite for peace.

REFERENCES
Draijer, C., 2020. Best practices of business simulation with SAP R/3. Journal of Information
Systems Education, 15(3), p.5.
Bakaev, H.N., 2020. Main economics of small business in Uzbekistan statistical analysis of
indicators. American Journal of Economics and Business Management, 3(1), pp.259-265.
Online
About Stimulus packages, 2020 [Online] available through :<
https://www.instituteforgovernment.org.uk/explainers/governments-post-covid-19-stimulus-
package>
About Measures unique to the sector, 2020 [Online] available through :<
https://www.bitc.org.uk/fact-sheet/covid-19-unique-sector-responses/>.
About Poverty program, 2020 [Online] available through :< https://www.jrf.org.uk/report/we-
can-solve-poverty-uk>
About Impact on incomes and changes in jobs, 2020 [Online] available through :<
https://www.mckinsey.com/industries/public-and-social-sector/our-insights/covid-19-in-the-
united-kingdom-assessing-jobs-at-risk-and-the-impact-on-people-and-places>
About Local demand factors in UK, 2020 [Online] available through :<
https://www.economicshelp.org/blog/15390/housing/factors-affecting-supply-and-demand-of-
housing/>
About variables that dictate the retail sector UK 2020 [Online] available through :<
https://www.ijrte.org/wp-content/uploads/papers/v8i4/D8951118419.pdf>
About Price Equilibrium in UK 2020 [Online] available through :<
https://www.economicsonline.co.uk/Competitive_markets/Market_equilibrium.html>
About Law of Demand in UK 2020 [Online] available through :<
https://www.mrbanks.co.uk/the-law-of-demand>