Assume you are employed in a small restaurant in Bolton and your manager ask you to prepare a report describing following concepts and the way that they can affect the restaurant operation

431). This paper will discuss some economic aspects in relation to a Restaurant situated in Bolton. the restaurant to be discussed is Laibaz.
Demand and supply can be regarded as fundamental in economics and act as the backbone for the market economy in restaurant. Demand describes the quantity desired by customers and reflects the willingness by the people to purchase services or products. The demand relationship expresses correlation between quantity demanded and the prices. On the other hand, supply depicts the offerings by the prevailing market. The quantity supplied is the goods producers are to supply based on specified price. Correlation between prices and supply depicts the supply relationship. Therefore, price reflects supply and demand. Relationship between supply and demand determines the resource allocation. The market economy theory demands efficient allocation of resources. According to the law of demand, few people purchase goods when the prices are high, and the opportunity to purchase the goods decreases. The law of supply outlines the quantity of goods purchased at certain prices (Ayers &amp. Robert 2004, p.56).
The operations of Liabaz depend on market forces of demand and supply. The changing economy is contributing to the increase in demand. Demand in the restaurant is described in terms of increase in the perceived customer value for the services offered. Demand in restaurants varies from fast food outlets, demand for the ethnic cuisines, accommodation, travelling and the entertainment services. The demand and supply in the restaurant is influenced by the price levels for services and goods. The prices for food and other services should be reasonably accommodating to the customer since the restaurant is small. This will increase the demand (Ayers &amp. Robert 2004, p.58).
However, the customers’ income determines the affordability of the services