UK Economy: Public vs Private Goods, Social Welfare, and Challenges

This report examines the interplay between public and private goods in the UK, focusing on their impact on social welfare. It leverages economic theories from Krugman & Wells to analyze price elasticity, the law of demand, and the principle of alternative goods. The report discusses the challenges...Read More

PRIVATE VS PUBLIC
GOOD IN THE UK AND
SOCIAL WELFARE

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY....................................................................................................................................3
Economic theories from Krugman & Wells textbook........................................................................3
Availing sufficient supply of pubic goods and semi quasi goods.......................................................6
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................8
INTRODUCTION
Business environment is a sum of different internal and external factors that can
support the business entity to channelizes the business operations of the organization. This

report will discuss about the different elements that can influence the business entity to
deliver different quasi and semi quasi goods offer by the business entity. This report will also
discuss about the difficulty government face in delivering different public goods, quasi and
semi quasi goods to the general public. Discussion will be done on the basis of the past three
years economic records so that best level of projection of the concepts will be done under this
project. Provisions regarding merit goods and other such elements will also demonstrated
under this project.
MAIN BODY
Economic theories from Krugman & Wells textbook
The economic situation and perspectives are significantly influenced with various
elements or economic directions. This is significant for the economic situation of country to
understand about the various circumstances and situation (Stevens and Shibanova, 2021). The
people in United Kingdom believe in utilising different goods and products that can certainly
indicate and allow the people to utilise the different and various goods and products based on
the individual need and requirements of the people. Theories of economics that can contribute
in utilising the different theories of economics will be demonstrated in the following points.
Price elasticity theory
Public goods has also been cover up by the economic theory and aspects associated
with the economics. The price elasticity of demand is one of the most significant economic
theories that can support the stakeholder and people to understand the needs and requirements
of the economic theories. In respect to public good this is important analysing and
interpreting the needs and requirements of the people. This theory believes that if the price of
the one product is increases than it would certainly influence the demand of the other
respective products. This theory interprets that in case of the price of the one product
increases than peple start to utilise the other alternative for such product. This can be best
interpreted with the fact that in case the price of the tea get increases than people would start
utilising the coffee (Adámek, Mössme and Hauber, 2019). This is a basic human behaviour
that allows the people to look after the productivity and buying power capacity to consume
the product. This is very significant for the economic theory that the use of the product is
highly based on the price of the respective product. Krugman & Wells textbook 2020 is a
very significant element and direction that favour and empower the business organisation and
venture to give focus to utilise the one significant product in case the price of any of the

public good, quasi and semi quasi product. This is significant for the people to understand the
sign fiancé of the cost and price in respect to make all the buying decision making.
Public good are very keen which certainly indicate and demonstrate or favour the
business venture and the general customers to understand the significance of the pricing in
order to make the buying decision making. This general theory of economic is all about
directing the potential customer to make it available the potential public good (Picciotto,
2017). All the types of product such as public good, quasi product and semi quasi good get
influenced with this particular economic theory. It is a part of the economic theory that
certainly allow and favour the business ventures and potential customers to understand the
requirements of the economic theory so that bets level of decision making could been
directed by the potential customers and people in the respective arket place.
Law of demand
This is another theory that indicate the stakeholder about the law of demand. This is a
theory that is all about if the demand of the respective product increases than this would
certainly increase te price of the respective product. Public goods are more likely to be in a
huge demand that could also allow such goods to be costlier in nature. This is a basic nature
of the customer buying behaviour that they take decision on the basis of the price of the
product in the market. Law of demand is an economic theory that certainly indicate about the
basic nature and behaviour of the potential customers in the market to get to know about all
different concepts and ideas regarding the law of demand (Blattman and et.al., 2021). The
law of demand is a basic concept of the economics that indicate and demonstrate the fact that
demand of the public good, quasi good and semi quasi good is influenced with the price of
the respective product. There are many situations arises where the price of the public goods
product increases than this would certainly decrease the demand of the respective product in
the market. Law of demand is a concept of economics that indicate and demonstrate the fact
that price is a general element and basic characteristic of demand in market.
Principle of alternative good
This is another economic theory that support the customer to understand the need of
the pricing practices and the goods in market. This theory is all about to get to know how the
availability of the alternative products in market complete influence the demand of the public
good, semi quasi product and the quasi product in the respective market. This is all about

understanding the needs and requirements of the potential product segment in the market.
This theory demonstrated one fact that companies that are engaged in availing the public
product, quasi product and the semi quasi product cannot demonstrate the whole market on
the basis of the prices of the product (Butler, 2018). This is all about understanding the
significance of the alternative products in the market. Principle of alternative product is all
about significantly allow the business venture to ensure the availability of the different
products in the market.
The involvement of the government in availing the various public products, quasi
product and semi quasi product in the respective market. The government in United Kingdom
is putting significant efforts for ensuring the proper availability of the public goods, quasi
product and the semi quasi product in the respective market place. This is all about ensuring
the proper supply of all different goods in the respective market (Mzembe and et.al., 2020).
In the recent time certain market failures are witnessed in the United Kingdom to avail the
public good, quasi product and the semi quasi product in the respective market. In the recent
time the covid pandemic could completely spoil the supply of the goods in the respective
market place. The use of the different products under the market place. This is all about
ensuring the proper supply and availability of the different goods and product under the
respective market place.
The covid pandemic could completely stop the supply and demand chain of the
market. The pandemic could imposed the lockdown like guidelines that could certainly affect
all ares associated with the market. This is a part of the guidelines related to covid is such that
the market is full of fundamental aspects and approach that certainly empower the business
unit to ensure the proper availability of the public goods, quasi product and semi quasi
product. The use of all different products and goods become significant for the business
ventures to ensure the proper supply of all different products and goods in the respective
market place (Chikudza and et.al., 2020). The use of the all these products are very
significant for the potential customers in the market that is all about ensuring the proper
availability of the products in the market. The covid pandemic could certainly affect the
respective supply of the all different products but the demand would remain the same in the
market. All this affected the business unit to ensure the proper availability of the products in
the market. All the consequences and impact of the covid 19 pandemic could certainly affect
the pandemic situation. This is certainly demonstrated the fact that the shortage of supply
would not let the businesses to sustain the smooth supply of products in the market.

Availing sufficient supply of pubic goods and semi quasi goods
The supply of the public goods and the smei qusi products could get affected due to
the covid 19 pandemic. In recent time this has certainly influenced with the covid 19 situation
that could impact the supply and demand of the products and goods in the market. This is
indicated that the business environment i full of forces and factors that can influence the each
dimension of the businesses. The demand and supply of the product is highly influenced with
various factors and elements or forces that can allow the business entity to get engaged with
the potential business environment forces (Freier and Holloway, 2019). Public goods and
quasi goods are the essential products and requirements of the human being that can certainly
allow the business to face issue while availing the proper supply of the public goods and
quasi goods. The entre pandemic has stooped the supply chain network so that the business
houses could influence the entire supply management in the most significant way possible.
The covid pandemic could imposed the lockdown like situations that could not let the
business entity to ensure the proper supply of the products in market. The supply chain
management system could completely stop and also the prediction of the semi quasi and the
public goods could stop that could also influence the supply of all these products and
equipments.
Public goods are among the key essential and requirements of the business house that
could imposed the basic demand related to the products and goods to the respective
stakeholder. The stoppage of the production in factory and the pace of the work an
doperations at factories could completely stoop the supply of the product in market. This is
essential for the people to meet up the basic requirements and needs so that all areas related
to the products and the needs could been cover up by the stakeholder. The government face
the major difficulty in allowing the proper supply management system (Howlett, 2019). Also
the covid guidelines could only ensure the 50% staff in the factory premises that could also
create a significant stoppage in the overall production of the business unit. This make it more
significant for the business house to allocate the proper supply of the basic products require
for living. Issue of government is also regarding the availability of the labour supply in the
market. This is a very significant task for the stakeholder that the ensure regarding the labour
supply is very crucial.
The issues of the government in United Kingdom are also about the pricing related
issues. The supply of the public goods and semi quasi products could completely stop that
could create a significant issue in related to the price of the product. This makes it more

important for the government to control the pricing of the products. It is important for the
government top ensure that the prices of the products could meet up the needs and buying
ability of the customers in the market. Black marketing related issues are also arises in the
United Kingdom due to the covid 19 pandemic. Increased prices of products due to the high
demand and limited supply could completely influence the demand supply network of the
public and semi quasi products in the market (Kudłacz and Markowski, 2018). This is a
significant task for the business unit to identify the overall demand and supply requirements
of the public goods and semi quasi products in market. The market news of the United
Kingdom also highlighted the fact that the United Kingdom could suffer with the supply of
the products in the market. For example supply of the all public goods and the semi quasi
products could stop due to the lockdown like situation. This is significantly affected the
business entity to encourage the proper supply of all the products in the market. This make it
significant for the business entity to deliver the proper supply. The issue regarding the supply
of all different products in the market.
For example in United Kingdom various public goods supply such as clean air,
drinking products and many other could influence at a huge level due to the covid 19
pandemic. The effect of the pandemic is major and huge that the entire situation could
completely went out of control in the market. Like these factors semi quasi products supply
also get influenced due to the pandemic issues. These are the elements that certainly get
influenced with the supply and demand perspectives of all these products in the respective
business environment. This can be stated as a fact that all these products are the requirements
of the human being and the general people so this become essential to ensure a proper supply
of all these products (McCullough and Kellison, 2017). This become significantly effective
and important for the business ventures to avail a proper supply of all these products in the
market. There are many instances have been noticed when the supply of the products like
public goods and semi quasi become a shortage for the government. Incidents like BREXIT
become more serious concern for the government as it could directly influence the supply of
the different products in the market. This is important for the businesses and the people to
meet up the overall supply and demand of all these products with support of effective buying
power and the income of the respective stakeholder group. It makes it more realistic for the
businesses and the people to identify the elements and factors to properly ensure the overall
supply of all these products in the market.

CONCLUSION
The United Kingdom is a place that could offer different obstacle in availing the
various products segment in the market. People faced issues in approaching the availability of
the public goods, semi quasi products in the market. This becomes a huge challenge for the
government to make a proper supply of all these products in the respective market. This is
more significant for the business unit to ensure the proper availability of all these products
range in the market. Different challenges related to price, supply chain and many other are
also get involved with the government while dealing with the respective issues. This makes it
significant for the business house to ensure a proper availability of all these products in the
market.
REFERENCES
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