Impact of Consumer Behavior and Government Policies on the UK Economy

This report examines the UK's economic landscape, focusing on the factors that influence consumer behavior and the government's policy responses to the economic challenges posed by the COVID-19 pandemic. The analysis begins with an overview of market dynamics, including the laws of supply and demand, and how shifts in these areas impact retail spending. The report delves into the factors that drive changes in consumer demand, such as income levels, state interventions, and social characteristics. Furthermore, it explores the various policies and programs introduced by the UK government to support businesses and consumers during the pandemic, including poverty initiatives, government transfers, and organizational steps. The report concludes by assessing the impact of these policies on the UK's economic recovery and providing insights into the future direction of the economy. The report is a valuable resource for understanding the complex interplay of consumer behavior and government interventions in the UK economy.

Economics for Business

Executive summary
The UK is a socialist capitalist economy that usually runs with free exchanges between free
markets. It is only because the government finds any suspicious behavior that it meddles. The
United Kingdom is faced with economic damages incurred by limitations and lock-downs on
Covid-19. This study has been prepared with two key objectives: firstly, to identify the different
factors that influence customer behavior in consumer purchases and, secondly, to identify the
various policy programs and interventions that have been placed in place by the UK Government
to help its economies and customers recover from financial damage.
In the first portion, the law on production and consumption has been addressed and specific
scenario of demand and also the factors causing demand have also been addressed. Factors such
as income impact, state intervention, local social characteristics, market permeability, etc are
addressed. In the second part, the numerous policies and programs introduced by the UK
Community to support its business situation deal with the stress caused by the lock-up and the
restrictions imposed by the corona virus problem are stated. Government-aided poverty
initiatives, various contributions made by it, higher dose introduced by it and business
organizational steps taken by it are debated.

Contents
Introduction.................................................................................................................................................4
Main body...................................................................................................................................................4
Task 1......................................................................................................................................................4
Task 2....................................................................................................................................................12
CONCLUSION.............................................................................................................................................14
REFERENCES..............................................................................................................................................16

Introduction
Market spending includes overall money expended by individuals and families on final products
and services in the market, while retail sales in the economy track customer demand for
completed goods over a given period of time (Silva, 2019). It forms the foundation of a
regulation market. Any large changes in customer spending on merchandise may have a
significant effect on the economy as a whole. One such variance was caused by the corona virus
pandemic, and the resulting decline in consumer expenditure in the United Kingdom is the basis
of this report's discussion. Good and negative changes in market demand are addressed by the
study of supply and demand. The measures taken by the UK Government to control and
encourage customers to invest more so the economy will improve are also addressed below.
Main body
Task 1
Main factors determining positive and negative shifts linked to changes in consumer retail
spending
Demand
Economists use the word market to quantify any big or regulated consumers who are eager and
willing to purchase at all costs. Demand relies on criteria and needs-the customer can want to
differentiate between need in the demand, but they are very similar from the finance adviser's
point of view. Production is also dependent on willingness to pay for it. They don't have a deep
desire as long as you can't afford it.
A purchaser who pays for a retail system or special arrangement shall be named a price. The
cumulative number of units bought at that price shall be named the quantity ordered. The raise in
the price of a product or service nearly invariably lowers the amount demanded. In the other side,
a decrease in prices would increase the amount needed (Nelson, 2020). At a time where the cost
of gallons of fuel is increasing, for example, consumers are searching at ways to minimize their
consumption by consolidating those companies, commuting in a car or travelling in a wide city,
going on a weekend or staying closer to home. The specialists in finance note this relation
between the costs and the sum needed by the law of interest. The rule of interest recognizes that
all conditions influencing interest (as set out in the following model) are preserved.

The fuel business model can be interpreted as a map or diagram. The interest schedule is a table
showing the sum needed for each cost. The cost of this position shall be measured in dollars per
tank of fuel. It is calculated that the required quantity of gallons is large over time e.g. every day
or annually) and over a geographical region (e.g. state or country). The interest curve shows the
relationship between the cost and the amount demanded in the graph, as seen in Figure 1, with
the number on the diagram.
Figure 1. A Demand Curve for Gasoline.
The demand schedule indicates that as value rises, demand levels are decreasing and vice versa.
These focal points are then configured, and their connection row is the income effect (D). The
declining variance of the interest curve once more demonstrates the rule of value: the correlation
between expenses and the sum demanded.
Supply
In economic terms, the production is not at all like the amount supplied. As market observers
refer to versatility, they mean the link between the variety of expenses and the sums given at
those rates, the association between an elegant curve and a flexible work schedule (Bakaev,
2020). When contemporary theorists refer to a given number, they just imply a certain point on
the pause curve or a total on the flexible schedule. Thus, versatility refers to the gradient and the
specified quantity refers to the (specific) point of the curve.

Figure 2 points out the rule of versatility, such as the usage of the gas market again. Like
curiosity, it can be shown flexibly and use a map or graph. A flexible package is a table,
equivalent to Table 2, which indicates what is being delivered across a variety of prices. Again
the expense of the dollar is measured per gallon of petrol and the amount raised is expressed in a
number of gallons. A flexible curve is a rational reflection of the relation between the expense of
the enabled smart and the measure.
Figure 2. A Supply Curve for Gasoline
The supply plan is the document showing the amount of energy delivered at each cost. When
prices increased, this figure led to additional increases and vice versa (Anastasiou, Louri and
Tsionas, 2019). The Supply Curve (S) is obtained by plotting points from the Supply Plan and
then linking them. The advantage of the elegant curve illustrates the rule flexibly: that a much
more distant cost promotes a greater sum of income, and conversely.
Equilibrium
Since the production and consumption graphs both have the expense on the horizontal pin and
the total on the center, the demand graph and the elegant curve for a specific company or
government will appear on a specific graph (Tien, 2019). Ask and decide the expense and the
sum to purchase and sell in a marketplace alone.

Figure 3 shows the connection of production and consumption in the fuel industry. The
requirement curve (D) varies from Figure 2. Related data are given in a basic framework in
Table 3.
Figure 3. Demand and Supply for Gasoline.
The production curve (D) and the distribution curve (S) converge at position E with a cost of
$1.40 and a total of 600. Coexistence is the key cost where time available is equivalent to the
amount given. At an expense of more than $1.80 terminology, the amount contributed
approaches the minimum amount, but there's plenty of grace. For example, at a harmonious
expense of $1.20, the amount demanded exceeds the amount of money given, so there is a lot
more interest.
Demand curve shifts to the right and left depending on the retail good, and their effect on
consumer demand
The direction of the demand curve moves to the left or the right after the adjustment in the
fundamental demand predictor (Clef, 2019). The extension pursued is shown by switching to one
side of the bell curve of importance. This may be attributed to a number of factors, such as an
increase in financial, a rise in the prices of fresh material, or a reduction in the cost of the
company.
Increase in demand curve

Route pursued the necessary protocols, the expansion of the quantity demanded at all rate. For
example, if cola turned out to be more attractive, interest would grow at any cost. Common
expansion can be clarified by moving interest to one hand.
Decrease in demand
In the other hand, demand will decline and shift to the left of interest for different reasons,
restoring the fall in cash, assuming it to be a regular benefit, reducing the cost of yet another
individual, and rising the cost of a substitute (Putra, 2019). For example, if the value of a
substitute, such as strawberries, declines, less cola is needed at any cost, as customers turn to a
substitute.

Decreases in demand are shown by a shift of the demand curve to the left.

Supply curve shifts to right and left, depending on the retail goods, and their effect on the supply
of retail goods.
Rising costs
The direction of the supply curve would be at least another of the operated service factors after
the adjustment. For instance, a decline in supply, including a raise in labor costs or the cost of
production, would move the role of the graceful cycle (Treiblmaier and Beck, 2019). If costs
emerge, you can allocate fewer at any arbitrary expense, and the elegant loop moves to one side.
Falling costs

As prices drop, more can be generated and the quantity supplied moves to the right. Any
adjustment in the simple concept of stability, such as shifts in the supply of resources or changes
in pressure, risks and benefits, would move the elegant curve with one hand of another.
As supply rises, offset by no changes in the market, the quantity supplied moves to the right. If it
extends flexibly, the state of excess emerges elegantly at the old stage of equilibrium. This will
allow investors to sell their commutations, which then in turn will reduce prices (Buckle and
Thompson, 2020).

This cost cutting then promotes a fall in production and a growth in demand. These produce
outcomes until a new degree of optimum is achieved. Lastly, these factors are balanced by a
reduction in prices and a rise in volumes.
Task 2
England's financial rebound from the COVID-19 epidemic has collected on a leap, details
emerged on Thursday, but the country has gone over £2 trillion ($2.64 trillion) in size and
worries the potential. Job's problems are on the rising (About UK government’s approach to deal
with COVID, 2020). An investment agreement surpassed pre-pandemic peaks in July, and details
from the August Retail Price Index shows the highest growth in nearly a decade, in all cases
exceeding the desire of business observers.
The private sector in a range of international has only operated at a high degree of duty, fuelled
by the epidemic with the inclusion of new taxes and decreased profits. In fact nearly all attorneys
are raising their duty rate by at least as their income is decreasing. Any countries are going to be
too complicated. People and communities will have significant challenges in general. It is tragic,
but vital in general, that promoting discovery, even through grant money and benefits, is an
effective solution to a loose contract. Anyway as soon as possible, we can switch from this Deal
to one that will substitute meaning or value as a result of this duty.