Analyzing Recent Issues in the Business Environment: Trampoline Prices Soar Due to Supply Issues

This report analyzes recent issues in the business environment, specifically the increase in trampoline prices due to supply issues caused by Brexit. It also discusses microeconomic theory, demand and supply, and elasticity. The report concludes that the UK government needs to ease trade restrictions and barriers to solve the issues caused by Brexit.

Business Environment

Table of Content
Introduction
Arguments over Trampoline prices soar
Application of theories on the Trampolines Supply Issues.
Conclusion
References

Introduction
The report aims to analyse about the discussion of recent issues relating to high
transport cost and port congestions. On the other hand, there is evaluation of
microeconomic theory, arguments on the BBC webpage article.
 Along with that, there is brief analysation of two main issues named Demand and
supply and Elasticity.
This report generally highlight the issues of which are caused by the Brexit theory.
Furthermore the long terms consequences faced by shipping industry.

In UK the cost of trampoline prices are likely to increase in the summer. The owner of outdoor toys
James Owen said that the High transport costs and port congestions may increase the price of toys. It is
true in every aspect because if the ports are congested. The cargos will face a problem of unloading their
products in the port. The frames will be expensive and the consumers had to pay more for the final
products. On the other hand microeconomic concepts and theory suggests that when demand of any
product goes higher. Then the prices of that product will inflate in the market.
 Huge price hike could be seen in the market of trampolines. Their prices are likely to soar by 40 to
50%. This is true because the manufacturing companies face a scarcity of resources. On the other hand,
without resources the development of final trampoline product must be difficult. Trampoline is also
popular among the kids. In the summer trampolines products has huge demand in the market.
Arguments over Trampoline prices soar

Application of theories on the Trampolines
Supply Issues.
Law of Demand and Supply Theory: In this theory there is a relation between the demand and
supply of a particular product. There are basically two assumptions to understand this theory. If the
demand of a product increases and supply remains same. Then the price, of the product will
increase in the market. On the other hand, if the supply increases and demand stays low. Then the
price of the product will go down in the market. In UK due to Brexit Policy, the shipping industry
has faced a huge backlash in the market. The price of several products are inflated and Covid
situations has made it even worse.

Continue
 There are several types of elasticity: It measures the quantity demanded in change of price.
This is measure over a point which is known as point elasticity.
 Price elasticity of demand: – It measures the quantity demanded in changes of supply.
 Price elasticity of Supply :– It measures the quality demanded for two goods. For example
one good named X and another one named Y. The price one good may affect the price of
another.

Conclusion
 From the above report, it has concluded that the issues of Brexit could be solved by the UK
government. The only solution is to ease the trade restrictions and barriers in the market. On the other
hand, there is also an discussion about arguments over the trampoline prices, application of different
theories of regarding supply and demand. Along with that, there is also brief analysation of several
elasticity theories and different measures which could be used to solve the problems of trampoline
prices in the market.

REFERENCES
 Akhtar, M. and Sushil, S., 2018. Strategic performance management system in uncertain
business environment: An empirical study of the Indian oil industry. Business Process
Management Journal.
 Betti, N. and Sarens, G., 2020. Understanding the internal audit function in a digitalised
business environment. Journal of Accounting & Organizational Change.
 Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling, 78, pp.275-292.

Thank You