TMDIBS106

Learning outcomes assessed:

  • Describe and discuss microeconomic concepts relating to business decision-making.
  • Employ economics concepts to the creation of tactical (short-term) and strategic (medium to long-term) decision-making involving both national and international market.

Assignment brief:

Write a report answering the questions of this brief. The report should be 1,000 words (±/- 10%) total length. Additional guidance will be provided separately.

Due to the Covid-19 Pandemic it has not been possible for many consumers to go abroad on holiday and there was a huge demand for UK holidays. This is called ‘domestic tourism’ but often referred to as a ‘staycation’.

There is an argument that due to uncertainties of Covid spreading in other countries of the world there will be worries and a lack of confidence by many to go abroad, and likely that a considerable number of consumers will opt for domestic tourism again. Coupled to this there is the likelihood of overseas tourists coming to the UK to visit.

As a result of this is likely that ‘demand’ for UK holidays will exceed the available ‘supply’.

Task:

Using appropriate economic theory respond to the following questions concerning UK holidays. Diagrams should be used where appropriate.

  1. Explain why an increase in price may affect demand
  2. The Government often intervenes in the economy in the case of market failure. Is this a case of market failure?

Take care to present clear arguments that are supported by economic theory and appropriate evidence from academic and other sources. Please remember this assignment is NOT about your personal opinions on Covid-19, or how the government has dealt with lockdowns, or whether people should be able to go abroad.

You should consider:

  • Supply & Demand / Pricing Mechanism (with diagrams)
  • Demand and Supply -Side Decisions
  • Market Structure & Failure