Economic Concept and Models: Understanding Demand, Supply, and Elasticity

This presentation discusses the impact of global factors on business operations, using Trampoline's profit issues as an example. It covers the concepts of microeconomics, law of demand, factors affecting demand, elasticity in demand, supply, law of supply, factors affecting supply, and change in supply curve. The presentation concludes that the increase in the cost-price of the Trampoline will affect the supply at the global level and also their profits.

Economic Concept
and Models

Table of contents
• Introduction
• Trampoline's profit Issues
• Concept of microeconomics
• Law of Demand
• Factors affecting demand
• Elasticity in demand
• Supply
• Law of Supply
• Factors affecting supply
• Change in supply curve
• Conclusion
• References

Introduction
Business environment is basically the sum of all the
factors which are not in the control of the management and
affect the different operations of the business in both positive
and negative manner.

Trampoline's profit Issues
According to the news of BBC, the prices of shipping
is arises day by day due to which the prices of
trampoline at the international level has been
increased and one of the sports organisation fames
this. One of the owner of outdoor toys says that the
prices of the toys are increases because of increase as
well as variations in the cost of transportation and port
congestion.

Concept of Micro economics
Due to the large size or frame of the Trampoline cost
of toy is increased and this result in that the respective
product are not purchased by the customers.

Law of demand
Law of Demand, state that the higher the price of the good
the lower the quantity demanded in the market(Rand, 2018).
There are various types of factors that have same sections in
the marketplace and also have some particular approaches.

Factors affecting demand
 Price of the commodity
 Income of the consumer
 Price of related goods
 Taste an preferences of the customers

Elasticity in Demand
This is also known as demand elasticity which state
that how the demand of the goods and services is
compared to change in relation to other economic
factors like income or price.

Supply
Supply may be define as the ability of a
procedure to produce the goods and services in order to
take them into the market.

Law of supply
The law of supply is basically a micro economic law which
state that if the price of the good and services increases then
the supply of the particular good is also increase and vice
versa as all the factor will remain constant (Buechner, 2018) .

Factors affecting supply
 Costs of production
 Government Subsidies

Change in Supply Curve
This is related to the shift of the supply curve because of
the change in the various factors such as cost of
manufacturing the good, change in technology and many
more(Dean and et. al., 2020).

CONCLUSION
From the above presentation it has concluded that, increase in the cost-price
of the Trampoline will affect the supply at the global level and also their profits. As
there are two framework that present the global market case i.e. “demand and supply”
and “elasticity of demand and supply” .

References
 Ślusarczyk, B. and UL HAQUE, A., 2019. Public services for business environment: challenges for
implementing Industry 4.0 in Polish and Canadian logistic enterprises. Administration & Public
Management Review, (33).
 Calabrese, M and et. al., 2018. From mechanical to cognitive view: The changes of decision making in
business environment. In Social Dynamics in a Systems Perspective (pp. 223-240). Springer, Cham.
 Osborne, M.J. and Rubinstein, A., 2020. Models in Microeconomic Theory ('He'Edition) (p. 362). Open
Book Publishers.
 Rand, S., 2018. Social justice as a professional duty: Effectively meeting law student demand for social
justice by teaching social justice as a professional competency. U. Cin. L. Rev., 87, p.77.