MOD003327: UK Food Supply Challenges in 2020 Analysis

This report analyzes the UK food supply challenges encountered in 2020, focusing on the impact of the COVID-19 pandemic. Task 1 delves into the principles of supply and demand, illustrating their movements through graphical representations. It explores the left and right shifts of both supply and demand curves, explaining how factors like production costs and consumer behavior influence these shifts. The analysis further examines the concept of equilibrium price and quantity, highlighting the effects of supply and demand changes on price equilibrium. Task 2 then shifts to policy interventions, discussing price controls, poverty programs, and fiscal policy as potential solutions to address the identified challenges. The report also touches upon other social welfare strategies. Overall, the report provides a comprehensive overview of the economic dynamics affecting the UK food supply chain and potential policy responses.

UK food supply challenges in
2020

Table of Contents
Task 1 ..............................................................................................................................................3
1: Graph explaining the movement the supply curve .................................................................4
2 :Graph movement of demand curve ........................................................................................6
3: Equilibrium price and quantity ...............................................................................................9
TASK 2 .........................................................................................................................................11
Price controls.............................................................................................................................11
Poverty programs.......................................................................................................................12
Fiscal policy ..............................................................................................................................12
Other social welfares strategies ................................................................................................13
REFERENCES..............................................................................................................................14

Task 1
Supply – Supply is an economical concept, which shows the total number of goods and and
services which can satisfy the needs of the customers (Xu and et.al, 2019). In the case study UK
food supply chain is facing issue that its customers is doing stockpiling through which the
company is not able to fulfil the demands of all the customers.
Principles of supply
 There is a specific principle that when the prices of the goods increases then the supply
which also get increased.
Supply curve

1: Graph explaining the movement the supply curve
Supply curve represents the relation between price of goods and quantity supplied for a
given time period. But in the case of UK food supply, the customers are not worried about the
prices they are ready to give whatever price asked by the seller because due to Covid pandemic
people are worried that will they receive the necessary goods or not, therefore the demand is
suddenly increased and people started doing stocking of goods they were stared stocking of
vegetables and fresh fruits thus the supply get decesses. (Menezes and et.al, 2020).
Left shift of supply curve
The only reason through which the supply curve moves in the left direction is when the
company decreases the cost of production, through which the company started supplying large
quantity of goods and products on a given price. On the other hand when the cost of production
increases company bounds to supply small quantity of the goods at a given price thus the curve
of supply shifts to left. As per the given case study, UK food supply is facing issues because due
to the pandemic all the suppliers have stopped supplying raw material so the production of the
company has been stopped. Apart from this, company is facing issues in the labelling and
packaging as well, this is also another reason that the slop of supply curve shift to the left.
Source : Supply curve., 2020

Right shift of supply curve
There are few reasons which make changes in the supply curve and move it rightward
when the supplier in the market increases then the supply curve move in the right direction,
simply when the competition is high in the market then no one firm can take high prices from the
customer as the smiler goods available at the cheap prices so why will customer buy at high
prices (Wang and et.al, 2018). In the case of UK food customers are ready to buy the goods at
high prices due to the pandemic their for the graph moved to the right direction.
Source :Global Affairs., 2020

2 :Graph movement of demand curve
Demand is an economical term which shows the desire, wants and needs of the customers to buy
the particular goods and product.
Principle of demand
 Principle of demand shows the changes in the consumers demand when the prices of
goods changes.
Source : 'Law Of Supply., 2020

 The another principle of demand is that all the factor except price which can affect the
demand remain constant.
Sources : Law Of Demand, 2020

This demand curve shows the relationship between price and quantity demanded by the buyers,
in the case of UK food supply, the demand for the goods is suddenly rises due to which company
was not able to fulfil them. Demand for fresh vegetable suddenly increases due to the pandemic.
Left shift of demand curve
Demand curve only get shifted to left when the demand of the goods drop down, which
means that the customer is demanding fewer goods, in the case study, the customers are
demanding more goods than their needs and stocking them, in result all the people are not getting
their goods.
Right shift of demand curve
Source : Shifts in demand., 2020

The right shift of demand curve refers to that the demand of goods is getting increased
and customers are ready top purchase the goods at any prices. This thing happened in the case
study, due to the economic changes customer are ready to buy the goods at any cost, and they are
doing bulk buying.
3: Equilibrium price and quantity
Equilibrium price refers to those price at which the quantity demanded is being equal to
the quantity demanded and this will determine from the intersection of demand and supply curve,
But in the case study demand is higher than the supply.
Sources : Global Affairs., 2020

Impact of supply and demand in the price equilibrium
Changes in the demand and supply curve directly impact the price equilibrium, when the
supply curve shift to upwards it denotes that the supply decreases and the demand remains the
same, in such situation the company can't full-fill the needs of all its customers, which happens
in the case of UK food supply company is not able to satisfy all its customers as the company
don't have proper supply of vegetables. (Zhou and et.al, 2019). It reflects on the equilibrium
curve as well, the curve shows that the prices increases but there is shortage in the quantity. In
the case study customers are ready to pay any cost but UK food supply don't have quantity to
fulfil the demand.
Increase in demand, and when all other factors remains the same, then the equilibrium
also get increases therefore the supply will also get increased so that the company can full fill the
demand of its customers which did not happened in the case of UK, where the food supplier is
not able to full fill the demand. On the other hand when the demand decreases the supply also get
decreased so the equilibrium will also fall.
Source : Liberto, 2019

TASK 2
Price controls
The effectiveness of such policies on changing their behavioural overall and particular
with the specific population subgroups has been variables, and they may have some smaller
group for marginalized groups. However, such approaches can also promote their industry which
may have an important effect on loner term of health beyond the consumer behaviour. In present
time most of the people have become health concussion for which much hospitality industry also
needs to change their policy in food as well as also make the changes in diet plan. In general.
Several countries currently they have implemented the different forms of marketing restriction
through which they also have their less or limited number of clients, and they are not much
beneficial in developing their more strategies (Mozaffarian and et.al.,2018). In UK governance
have set up their changing diet plan and prices have also become low while due to have Covid-
19 as large number of people do not have money that they can even spend more on food as well.
The media and policy makes have increasing more and more for having their main focused on
local food environment such as selling more streets foods or outside the schools as through
which many of the people have become their health planner in their daily lifestyles. Government
funding should also make the applied research a priority, while by also including some new
technology for nutrition assessments along with their behaviour and changing more in policy for
implementation and evaluation. Governments should also promote the food industry’s shift
towards healthier foods, taking advantage of rapidly rising consumer demand. There might be
having some interconnection which seems to be more important of an interacted, governance
strategies that can also use the strategies for adopting existing structure and systems. Strong
government leadership is more important to help deliver such as sustained and multilevel
approaches. Such improvements have also brought out while by taking measures steps including
the nutrition and health diet plan for their greatly improvement food systems and health (Lang,
2020). It could be with more national, equity and health saving for their countries. UK's
government play important role in local and national level for their more development in food
industry as they have stopped their work in between the Covid-19, and they need to make their
more developments.

Poverty programs
For reducing the poverty UK government have set up some policies such as minimum
wages to the regular worker in market and make them much skilled through which they can have
more jobs and easily make their more market position. While by opening the small business in
market and that could be easier for them in developing. Free market policies to promote the
economic growth that might be hoping which rising living standards with their filter down to the
same of the poorest people in the society. Direct provision of goods and services, also by
providing free education and health care to the poverty people who are enables to have their
spends money for their better treatments. Sustained economy growth is that while by promoting
economic growth increase the total income of the society that could happen in creating more jobs
and provide various methods of income (Pettinger, 2019). There is also seems to be more
concern that economic growth could be widened by poverty just because of more benefits the
highly skills and low people class or more than those who are at the bottom. Government also set
up the decrement in employee through which many of the people will get job, and they can easily
have their growth and that could also help for developing the economic of countries. On the
other hand, unemployment is major cause of poverty because this has little income, relying on
the state benefits. Unemployment can be also reduced through both the supply side of the
policies while by providing free training schemes for whom have their structurally unemployed.
Testis benefits involve increasing welfare benefits to those who have low incomes for example,
food stamps or child benefits (Hanna and Olken, 2018). Some relatively poor may fail just
outside the limit of their work and due to have more unemployed in countries that can also cause
the poverty. Due to have Covid-19 many of the people have lost their jobs, coming out from this
situation government have set up some strategies which are being mentioned above through it
come to know that government need to also make their countries to be more developed and make
their country growth.
Fiscal policy
Fiscal policy refers to the use of government spending the tax and try to influence
economic condition, especially on macro economic, condition and aggregate the demand for
their good and services along with this making their more economic growth. UK's government
have their own terms and condition through which they can have their more benefits at time of
changing the fiscal policy. The private sector components have make their aggregate demand are

too variable and too dependent while by taking more advantage and that should be seemed to be
more important in UK countries as well as for their people. In present pandemic most of the
people are suffering from the various things due ti having this country government have set up
the plan for their people how to overcome and how to make their more strategies in upcoming
future. Through this they can easily develop their country growth as well make their income
sources higher. Government taxation and spending more money that could also manage their
work nationally and used to their excesses and private sector consumption might be had their
more investment spending over the order to stabilize the economy (Gaspar and et.al.,2019).
When private sector spending turns over the down, the governance can spend more on tax and
have easy in order to directly increased in aggregate demand. While by taking this advantage
many business can easily get effected along with this they can also cause huge amount of loss
and some business can also cause some earning profits. Fiscal policy can also sometime lead to
have their country loss through which many of the countries have to pay their business losses and
make their business developed they have to capital loans from the bank while by putting some
interest.
Other social welfares strategies
Other social welfare seems to be related to social policies through which they have better
country growth and can also make their development in various industry. Recently. Higher
education fee hikes remain very controversial and promoted to be proposals of reducing the fee
of schools or some other university. As should also come to know that many of the people do not
have money so that they cannot pay to their fees. Having their social welfare strategies need to
be improved in work life balance and opportunities for employee in working with various type of
work. In food industry governments have set up the policies of employment and increase the
number of food through having the change in diet plan for their more health. UK's government
have made the new entrant in private sector scheme are being offered less attractive terms than
their procedures (Garland, 2018). Some of social welfares work need to be more improve with
having their social well-being of families, individual and communities of their work through
which they can have their terms to be maintained and developed their countries strategies. The
UK public pension system seems system is fiscally sustainable guarantee the maintenance of
minimum system of fiscally guarantee and the income of pensioner might be increased due to
have private or public sector job. On other hand, public sector through which they have earned

much money that could also might be important fGasparand et.al., 2019or them in making their
country growth and that could also have their social welfare strategies (Wolfenden, Albers and
Shlonsky, 2017). Government have also set up the various plans for their education systems and
various other theme in tourism so that they could make their growth along with they can also
have their growth and make their more development as compare to some other countries as well.
REFERENCES
Books and journals
Garland, D., 2018. Punishment and welfare: A history of penal strategies (Vol. 29). Quid Pro
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Gaspar, V. and et.al., 2019. Fiscal policy and development: Human, social, and physical
investments for the SDGs. International Monetary Fund.
Hanna, R. and Olken, B.A., 2018. Universal basic incomes versus targeted transfers: Anti-
poverty programs in developing countries. Journal of Economic Perspectives, 32(4),
pp.201-26.
Lang, T., 2020. Feeding Britain: our food problems and how to fix them. Penguin UK.

Menezes and et.al, 2020. The Strategic Industry Supply Curve. The Journal of Industrial
Economics.68(3). pp.523-555.
Mozaffarian, D. and et.al., 2018. Role of government policy in nutrition—barriers to and
opportunities for healthier eating. Bmj, 361.Lang2020
Wang and et.al, 2018. Equilibrium of interdependent gas and electricity markets with marginal
price based bilateral energy trading. IEEE Transactions on Power Systems.33(5).
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Wolfenden, L., Albers, B. and Shlonsky, A., 2017. registration for a systematic review:
Strategies for scaling up the implementation of interventions in social welfare.
Xu and et.al, 2019. On the supply curve of ride-hailing systems. Transportation Research
Procedia, 38, pp.37-55.
Zhou and et.al, 2019. Minimum price equilibrium in the assignment market.
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