MOD003327 Economics for Business

Task 1: Using economics theories from Krugman & Wells (2017), explain supply and demand principles applied to the UK food supply in 2020. Support your explanation of the economic concepts by providing basic supply and demand graphs, with analysis applied to the UK food
supply. Include relevant examples and references from the UK food supply market and UK news in 2020 to support your explanations.

Task 2: Discuss the economic principle of market failure and government intervention in the supply and demand of food-related goods in the UK economy in 2020, providing examples of UK government interventions.

 

Explain whether you believe that the UK government interventions did or did not effectively address food supply market failures in 2020. Include relevant examples and references from the UK food supply market, UK news, and UK government publications to support your explanations.

Task 1: 50/100 marks (1,000+ words)

Use supply and demand economic theory and graphs to support your detailed explanations of each of the following concepts. All supply and demand graphs must show both supply and demand curves:

1. 3 graphs explaining the movement on the supply curve (1), shift left (2), and shift right (3) of supply curve applied to UK food supply examples, providing a minimum of one economic factor per graph to explain the changes in supply.

2. 3 graphs explaining the movement on the demand curve (1), shift left (2), and shift right (3) of demand curve applied to UK food supply examples, providing a minimum of one economic factor per graph to explain the changes in demand.

3. Explanation of equilibrium price and quantity, and how equilibrium shifts with supply and demand curve shifts, applied to the examples used in the graphs above.

4. Explanation of shortage & surplus, applied to the examples used in the graphs above.

Graphs can be originally drawn by the student (use Powerpoint, Word, or other free computer graphic program), copied from the Krugman & Wells textbook, ARUL EFB lectures, or from the approved reference literature list on the condition that they are edited to fit the food supply examples selected for your graphs, with correct labelling, source citation, and Harvard referencing.

 

Supporting evidence should be related to the UK food supply and food market only, and only from the approved reference literature list. Higher marks awarded for effective discussion of price and income elasticities, supported by supply and demand graphs.

Task 2: 40/100 marks (1,000+ words)

Discuss market failures and UK government interventions for food supply and demand issued in 2020, what it meant for the UK economy and the UK public in the past year.

Identify and explain the main UK governmental and economic policies that were used to try and address the market failures in food supply and demand, analysing if they were effective or not. Discuss and analyse at least four UK government strategies, such as:

1. Quotas

2. Price controls

3. Government transfers

4. Taxation

5. Fiscal policies

6. Poverty programmes

7. Other social welfare strategies

Explain whether you agree or disagree that the UK government effectively addressed food supply market failures in 2020 and why. Support your answer with factual UK policy examples from the approved reference literature list.

Referencing: 10/100 marks

Correct Harvard style referencing, clear formatting (including spelling, punctuation), and effective communication.

Total marks available: 100