Business Environment: Microeconomics, Demand and Supply

This presentation discusses the business environment, specifically microeconomics, demand, and supply. It covers the law of demand, factors affecting demand, elasticity in demand, law of supply, factors affecting supply, and change in supply curve. The presentation also highlights the issue of trampoline profit and its impact on the company's revenue.

Business Environment

Table of content
• Introduction
• Trampoline profit issues
• Concept of microeconomics
• DEMAND
• Law of demand
• Factors which does affect the demand
• Elasticity in demand
• Supply
• Law of supply
• Factors affecting supply
• Change in supply
• Conclusion
• References

INTRODUCTION
Business environment refers to the study of all
external and internal elements that assist
company management and have a significant
impact on management's international
operations. There are a variety of competitors,
including the government, consumers, suppliers,
and some conventional characteristics.

Trampoline's profit Issues
This was stated in a recent storey in a well-
known newspaper about the frequent changes in
the cost and price of the trampoline, and the
reason for the high pricing of the trampoline is
due to the high shipping costs, as analysed by
retailers who deal in the UK market.

Concepts in Microeconomics
Microeconomics is the study of how
individuals, households, and people behave
while making decisions and allocating
resources appropriately.

DEMAND
It is a term that describes a user's proclivity to
purchase a given product or service, supported
by the purchasing power to do so. The
components are all the same.

Law of Demand
It is the law that states that when a certain
amount of a good is purchased, the quantity
purchased varies with the price and that the two
are inversely associated; in other words, the
higher the price, the lower the demand, and the
lower the price, the higher the demand.

Factors which does affect the demand
• Price of the commodity
• Income of the consumer
• Taste an preferences of the customers

Elasticity in Demand
It is also known as the changes in demand
graph, which determines the displacement in
the global demand curve to the right or left,
depending on specific criteria such as changes
in financial gain, commodity cost, and buyer
preference.

Supply
It is a term that can be defined as the quantity of
money available to customers for specific items
and services. This has a lot to do with the total
amount of commodities that are now available at a
given price, as well as the company's potential to
generate new and fresh earnings.

Law of supply
It is a fundamental theoretical notion that has a direct
relationship with the amount of supply and the
commodity prices in a competitive market. Because all of
the components are the same, when the price of a given
commodity rises, the supply of specific goods decreases.

Factors affecting supply
• Costs of production
• Government subsidies
• Technology

Change in Supply Curve
It is described as the movement of the curve in
the graph above, which shows that some of the
components involve technology and some of the
subsidies.

Conclusion
The conclusion of this research is that trampoline prices are rising,
which is affecting the company's overall revenue. In relation to the
report, microeconomics is a comprehensive examination of all major
demand and supply principles.