Impact of Government Policies on UK Retail Sector's Demand and Supply

This report provides an executive summary of the economics of the UK retail sector, analyzing the factors influencing demand and supply, and the impact of government policies. The report begins with an introduction to business economics and its application to the retail sector, emphasizing the sector's contribution to the UK's GDP. Task 1 details the key factors that shift demand and supply curves, including customer preferences, population demographics, income levels, and the availability of complementary or substitute goods. It explains how changes in customer preferences (e.g., increased demand for sanitizers during the COVID-19 pandemic), population growth, income fluctuations, and the presence of complementary or substitute products affect the retail sector. Task 2 explores the main policies used by the UK government to influence consumer spending, including poverty programs, financial assistance, and regulatory adjustments. The report concludes by highlighting the importance of understanding these economic principles for maintaining a sustainable and effective economy. It also references various sources to support its findings.

Economics for Business

Executive Summery
Business economics is the field of study of theory of microeconomics related with running
business and impact of various element of demand & supply. These are shown how theoretical
practices convert and apply for real business life cycle. This report has been formulated yo define
effect of preferences of customer, income , complementary good directly influence or become h
reason o shifting of demand curve from right to left. As well as these elements impact on supply
level of products. Profit of particular retail sector directly influence by these elements thus
government to understand affection of each and every element formulate effect policies.
Government apply various procedure which useful in increasing their revenue. They introduce
poverty programme, proved financial assistance and reduce charge and rules , regulations
through which they can able to control side effect of elements effect or impact on the cash cycle
of retail sector. Government by using their fiscal as well as monetary budget policies maintain
demand and supply factor. It will useful and help in running UK economy in effective way and
government able to attain their long tem goals by maintain sustainably within this sector.

Contents
Executive Summery.........................................................................................................................2
Contents...........................................................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Brief description related with key factors reason of shifting of demand and supply curve of
retail sector of UK.......................................................................................................................4
TASK 2............................................................................................................................................8
Explanation of main policies use by government of UK for influencing consumer to spend in
retail sector...................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Business economics is the field of micro economics which useful in determining effect of
demand and supply of products while running economic cycle. To understand this concept, retail
sector of Britain has been taken. This sector play essential role in contribution of high rate of
percentage of earning for GDP. AS well as the main reason behind development of UK. This
report includes factors which become the reason of changing the demand a s well as supply curve
of relation sector. And policies procedure use by government to control their cash flow by
maintains sustainability within the retail sector of UK.
TASK 1
Brief description related with key factors reason of shifting of demand and supply curve of retail
sector of UK.
Demand and supply curve are graphical representation of curve which show relationship
between price and other factors of demand & supply which directly impaction shifting of these
curve.
According to DANIEL LIBERTO in (Poverty Gap 2020) Retail sector of UK is play vital
role in development of economy of this country. More than one fifth of GDP has been revenue
by retail sector. These factors useful in attain business and able to granted revenue which
helping running economic effective way. By running retail sector , government able to generate
more than of 30 & of revenue they able to granted from other service sector. Thus retail sector
play vital role of organization as well as for country development and growth. This help in
maintain position within the word competition market. As UK is developed country and their
population is famous for spending money or their savings in clothes, and other retail products.
Retail sector provides more than 5 billion of dividends to their shareholders. As well as
they also help in developing and providing employment in this country. Thus most of GDP is
totally depend on the earning of relation sector.
Many big multinational organizations focus on own effectively they able to work within
international market. UK ‘s market has been spread due to providing best quality of relation
products, liquor, cosmetic, food , grocery items within the whole world. Moore then 8 million of
people are engaged with retail sector

Thus it direly impact on the economy of UK. However there will be many factors which direct
become the reason of shifting of demand curve of relation sector. Following are define below
UK regional or local demand factors: There are various factors which directly impact on shifting
on demand and supply curves. Changes of preference directly impact on the demand shifts. As at
present time customer becomes the king of market thus change in their reference directly down
fall price of related goods .
Preference of customer: According to By Will Kenton in (International Poverty Line
2020). At the present time demand of sanitizers, heath care products as been increase thus their
prices also increase but once after the impact of Covid pandemic has been get down , pries of
these products reduce due to reduction of demand . Products value has been increase if demand
is getting reduce but in real life it is opposition. UK ‘s public preference and their mind set
change it influence by many factor, change in fashion , productively technologies directly impact
on their procedure. Thus retailers production capacity demand on theses factor. Customers
preference is the first property their demand has been change with short time period. When the
price of product get higher then demand curve shits from left to right which directly impact on
the demanded quantity of product. During the period of lockdown demand of retail goods,
specially liquor has been increases most of relation product rate

As per By ALICIA TUOVILA in (Transfer Price 2020) On the other side it also has
been seem that preference of customer change right to left or left to right , it shifted supply
curve. As when quantity of product has been supplied within the market then it price rte also
increases. It positive run which the effect of supply factors. Specially when customers retail
products quality available in large scale then products rate also get high by supplier. Medical
sector earn money due to the effect of pandemic heath care products demand has been increase
which directly impact on the supply cycle as organization produce equipment and retail produces
at large level. It also useful in increase profit but only for organization engage with
manufacturing of these items.

Population & demographic: This directly impact on the running business cycling of retail
sector. Growth of population will directly effect demand and supply curve. UK ‘s population
rate has been increases since last 5 years. With increment in population demand of good and
essential item like grocery, cosmetic food item has been increases as per By David
Goodman and Andrew Atkinson in( U.K. Economy’s 20% Record Plunge Adds Pressure for
More Aid 2020).
Demand curve shift from right to left if products demand has been increases band it postivley
impact on the supply curve as with the increment of demand of retail product, organization need
to increase their quality of supplying good . This impact on economic cycle of UK. As t s not
easy to maintain money supply for country. Retail sector useful in maintain money supply and
products flow of global cash currency by
and dealing with multination companies.
Supply curve is also impact of demographical factor , supply rate of retail products has
been high . Sector related which dealing in cosmetic products or grocers item which are daily
basic need even electronic item, all these supply has been increase and in demand due to effect of
increment in population rate of UK. Even social groups, reputations good will all these are also
impact in increment of relation good s supply
This are the reason of becoming or enhancing supply of these product and shifting of the
curve.

However there are some products whole supply has been decline due o the effete or impact of
Brixit aggrment after that the cost of producing material has been increase which impact on
directly of supply curve.
Effect of income: Income is the most effective factors directly impact on demand and supply .
Income: As per By Jasper Jolly in (Worst fall in UK retail employment since financial crisis
as Covid-19 takes toll – as it happened 2020)
UK public spending the investment on the basis of their income retiring come help in
investing spending money in retail products public to enhance supply cycle spring money on
producing goods and services. Which help in improvement of their life cycle. On the other side
lower income directly impact on deduction of demand of particular productive services. Since
past three four years economy crisis has been totally changed the income effect of public of UK.
As most of persons lost their job and they don't have sufficient income sources to earn money in
his there life with full of facilities does demand of cosmetic product liquor expensive items. This
also the reason of reducing demand of in product it of impact on supply curve the when income
of particular group has been in past with the demand for product which help in essential supply
of these product is a list prices increases on the side when customers income decrease then
demand in supply of these product has also been declined on 2 left when income of customers
has been reducing price of particular products increase on comparison of price quantity
demanded head been declined you to know everybody of money resources.

Complementary or substituted goods: Complementary good shadows goods without
which goods and not able to work and they are useless without complementary goods just like
cat and petrol shoe and socks on the with table to fulfil demand of particular product that they
are known as attitude good plays other goods customers demand has been impact of compliment
facial substitute good in retail sector most of products like clothing manufacturing of car How
the( COVID-19 Pandemic has accelerated the shift to online spending 2020) providing
cosmetic products housing products in leaving essential things lacrosse product call all having
their own complementary product thus when the demand of one complementary product get have
then the demand of other complementary good is automatically get have an it from that right
direction just like it the demand of car has been increase the demand of petrol is also increases in
UK

Demand of cosmetic products has increases as well as with the growth of population the
demand of car electronic items has been increase does the demand of petrol is with directly
impact on their demand the other side compliment increasing in 10 demand accounting good has
the increase the supplies of these to increment in the demand appointment compliment goods
lake ka shoes clause demand of sweater petrol other were leaving complementary good has also
been increases on the other side attitude good health in declared not induction in the month as
well as supply curve there various type of good available in the market and with competition in
ceiling with in the market economy level most of future strategy supervisor street good too with
taking able to extract the market share within the market especially multinational organisations
of America China use this strategies to reduce this share market of UK retail organisations.
Substitute good demand of coffee has been increases after the price of tea has been increment do
to the fact of trade edition with medicine country has coffee cup perfect substitute of the side
there various type of items cosmetic products Colgate food items real substitute product has been
available demand of substitute good has a increase in the other good team and prices in increased
or guys what does retail sector of UK has been me to use deal strategies to with taken able to
control the insect of attitude good for the years retail market on the other side supply curve has
awesome been negatively declining by the fact of substitute goods as well when the demand of

sister good health and increased and supply of particular good has been decline which impact on
the demand of particular good an and services in retail sector (U.K. Consumers, Retailers Hit
Hard by Corona virus Lockdown 2020 by Brain Swint).
TASK 2
Explanation of main policies use by government of UK for influencing consumer to spend in
retail sector
UK government for managing their cash flow formulate various strategies and engaged
with programme through which they are able to maintain demand and supply curve position and
money flow within their economic cycle. Following are define below
Poverty programmes: By introducing poetry program government UK able to recognise sectors
which really financial assistance by providing subsidiaries and financial have to workers and
Labour class people the able to enhance their living standard as well as providing them all the
necessary or essential items required to live their life in effective manner it will help in by
providing various educational programs starting up in using them help them to increase their
living standard and providing them financial help able them to make them successful through
which they can able to buy retail products which help in increasing cash flow of in the money
market there are various type of poverty programmes start-up by government the main purpose
of these programs to fulfil all the essential requirement of their low class people and enable them
to become well settled by providing education through which they can able to start their own
work most of public after the impact of corona virus and British agreement you came faces high
rate of recession period in the time of economic crisis by starting above poverty program
government able to enhance motivation can capabilities among unemployed person as well as
maintain their living standard buy investment in retail sectors
Government transfers: Government formulated Strategies and policies through which
they can able to control their supply and demand factors which affecting retail sector there are
various elements which directly impact or influence these curves to control the affection of
British agreement as well as issues arising due to economic crisis the transfer various industrial
sectors in to retail sector that convert them government to private which will help in generating

more profits at present time government of UK starting those programs our event through which
they can able to transfer their and convert them private to public and those required change
according to government policies they also provides financial assistance to most of retail sector
organisation they reduce digit transaction and policies regarding marketing in other countries all
these useful in improving sector performance and able to generate money.
Retail subsidies: Government of UK offer various subsidiaries to their retail industries.
By providing them financial assistance and subsidiaries they influence other industrialist or
sector entrepreneur to invest in retail sector. Which helping spreading this market and flow of
cash . Government organize various event as well as trade restriction to most of retail
organizations specially they focus on multination companies as these are useful and able to
running activities in effect way. Retail sectors directly impact on earning of economic sectors of
UK (Artificial Intelligence (AI) in Retail Market Worth $19.9 billion by 2027- Exclusive Report
Covering Pre and Post COVID-19 , 2020).
Thus by providing them subsidiaries help in increasing profitability rate, increase flow of
capital and proved employment to UK sector which useful in working in effective manner.
Stimulus packages: Government by starting up of various program also work for In retail sector
there every type of issues in problem arises during running business organisation by providing
government assurance and see me the packages they are able to run the organisation district
activities in effective and also common did you straight barriers with helping useful for bringing
back led use help in managing the morning supply factors. Government on the basis of is a nice
status identify industries able to generate profit for them their type of industries which
considered as sick organisations government on the basis of using acquisition muscle activities
of policies required those industries which are not able to generate profit for organisations on the
basis of that by reducing in providing the financial assistance there able to be coveralls the losses
and effective regency to sector industries in effective way (Analysis of demand. 2020).
Industry-specific measures: Go applying always measurement policies and furniture
commenting UK able to control the team and supply sex practice as well as in case customer to
print purchase detail products to mistake enable to speed the market as well as increase property
ratio as little sector help in increment any status useful in part capital income by providing
employment to personal.