Economics for Business Assignment Sample (GC01977)
Executive Summary
Demand and supply are the key factors of the settlement of the price of products. The product price is set at the equilibrium in the demand and supply points. But the change in the demand and supply changes the price of the products. In this report, the main factors will be the explanation of the demand and supply of retail products in the UK market. This report will be done the supply and demand analysis for identifying the main factors of products prices and demands. Then, this report will be tried to identify the positive and negative shifts linked to changes in consumer demand for retail goods and services.
This part of this report will be considered some important demand factors of UK retail goods and services including UK regional or local demand factors, population and demographics, income effect and employment and complementary or substitute goods, purchasing limits and subsidies and the response of retail supply on the market. The next point of this report will be the explanation of the governmental and economic policies of the UK that influence consumer retail spending in the UK. This part of this report will be considered several policies like poverty programs, Government transfers, retail subsidies, stimulus packages and industry-specific measures that directly impact the demand and supply of goods and services of the retail industry of the UK.
Table of Contents
Executive Summary.
1.0 Introduction.
2.0 Using supply and demand analysis identify the main factors.
2.1 Determine the positive and negative shifts linked to changes in consumer demand for retail goods and services
UK regional or local demand factors.
UK population and demographics.
Income effect and shifts in employment
Complementary or substitute goods.
Purchasing limits and/or subsidies.
2.2 The responses of retail supply on the market
3.0 Identify and explain the main UK governmental and economic policies that could be used to influence consumer retail spending in the UK.
Poverty programs.
Government transfers.
Retail subsidies.
Stimulus packages.
Industry-specific measures.
4.0 Conclusion.
Reference.
1.0 Introduction
Demand is the main factor of cutting a product in the market. Supply is the availability of a product in the market. Griffin (2018) stated that demand and supply have significant factors to set up the price of the product. This essay prepares the supply and demand analysis for identifying the main factors of products prices and demands. This section firstly identifies the positive and negative shifts linked to changes in consumer demand for retail goods and services. This segment considers the UK regional or local demand factors, population and demographics, income effect and employment and complementary or substitute goods, purchasing limits and subsidies and the response of retail supply on the market. Secondly, this paper explains the governmental and economic policies of the UK that influence consumer retail spending in the UK. This section explains the several policies including poverty programs, Government transfers, Retail subsidies, Stimulus packages and Industry-specific measures.
2.0 Using supply and demand analysis identify the main factors
2.1 Determine the positive and negative shifts linked to changes in consumer demand for retail goods and services
UK regional or local demand factors
Robbins (2018) mentioned that Demand is the key indicator to set the prices of products. In the case of UK retail goods and services, the regional or local demand has a significant effect on the products’ pricing. If the regional or local demand increases, the prices of retail goods and services will be also increased (Garrick, 2018). Conversely, the reduction in regional or local demand will be reduced the prices of retail goods and services.
UK population and demographics
The population and demographics are also key factors for increasing or decreasing the demand and supply of products. The increased population has a positive impact on the UK retail goods and services because the demand is increased (Garrick, 2018). On the other hand, the lack of potential customers or a lower population reduces the demand for retail products. In the case of the UK, the retail segment is very popular because most people buy the products and services from retail shops. The demographic factors include gender, religion, caste, social status and choice of the customers. Due to changes in the choice and taste of the customers, it affects negatively the retail segment of business in the UK. Robbins (2018) stated that religious barriers also affect negatively the demand for retail goods and services.
Income effect and shifts in employment
Income level also affects the demand for the products and services of the retail segment. Griffin, (2018) noted that the employment shifts affect the income level of the people that ultimately influence the demand of the retail goods and services. If the income level increases, it ultimately increases the purchasing power and demand of retail goods and services (Garrick, 2018). The higher-level employment also increases the income sources of the people that definitely increase the demand for retail goods and services. On the other hand, if the income level decreases, it ultimately decreases the purchasing power and demand of retail goods and services (Mankin, 2019). The higher level of unemployment decreases the income source of the people that reduce the demand for retail goods and services. In the case of the UK, the people have a high level of income and a lower level of unemployment that increases the demand for retail goods and services.
Complementary or substitute goods
Mankin (2019) noted that complementary or substitute goods also determine the demand for retail goods and services. In case of the rising price of complementary goods, the main products price will be increased that reducing the demand for the products. Conversely, substitute products price has a significant impact on the demand for retail goods and services (Garrick, 2018). If the price of substitute products increases, the demand for retail goods will be increased. On the other hand, the lower price of substitute products decreases the demand for retail goods and services. In the case of the UK retail segment, the pricing strategy has to be based on a competitive base by which it will be easy to manage the suitable demand of the products and services………………
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