Article Review - Economic Concepts And Models

This article review discusses economic concepts and models such as demand, supply, and elasticity. It also explores the impact of rising trampoline prices on the toy retail industry in the UK.

BMP4003 Business
Environment

Article Review - Economic Concepts
And Models
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Table of contents
• Introduction
• Trampoline's profit Issues
• Concept of Demand
• Factors Affecting Demand
• Demand Elasticity
• Concept of Supply
• Factors Affecting Supply
• Supply Elasticity
• Conclusion
• References

Introduction
Business environment is integrated with
all the aspects which are meeting the
business firms & also impacting the
overall consideration in the market which
affects the overall functionality of the
business firms. This also includes the
customers, suppliers, government,
technological factors and more.

Trampoline's profit Issues
• According to the BBC News, increasing
shipping cost is impacting to rise the prices of
trampoline and it is being evaluated by the
retailer operating toy retail industry. The owner
of Outdoor Toy, James Owen says that the high
transport cost & the increasing port congestion
may leads to larger toys that are trampolines,
swings and climbing frames. There is huge loose
which is being faced by many of the toy retailer
while getting huge profitability and revenue.

Concept of Microeconomics
Microeconomics is the study of
individual choices and preferences
which is responding to change in
the prices, method of production
and incentives. Individual group
are often grouped into
microeconomics subgroups that are
seller, business owners that affect
the overall distribution of given
resources.

Concept of Demand
Demand is an economic principle
which is referring to the desire and
the choices of the consumer to buy
the specific commodity & services
and they also having the limited
buying power to buy the specific
commodities.

Factors Affecting Demand
• Given prices of products and services:
• Income level of consumer:
• Taste & choices of customer:

Demand Elasticity
It is the main component of demand
which explain the change in demand
due to the variation takes places in
certain factors and includes given
p[rice level of products, income level
of buyer & their choices.

Concept of Supply
Supply, referred to the amount which is
sell by the seller in the target market or
can said that produced commodities
which are present at the particular prices
so that they can ensures huge profits in
target market.

Factors Affecting Supply
 Entire production cost
 Subsidies given by government
 Technology used

Supply Elasticity
It is referred to the shift in the
supply curve with the change in
the technology used, subsidy
given by government and so on.
When the suppliers who are
operating in toy retailing
increases the supply then the
supply curve move to right.

Conclusion
It is concluded from the above presentation that rising prices of trampoline
influence the entire demand and supply of trampoline in market of UK. The 2 main
components of economics that leads to maintain the flow of commodities in the
large market. Given prices of goods, income level of consumer are the aspects that
reflect the demand of the particular commodities.

References
Online:
• Trampoline prices 'to soar 50% on shipping costs', 2021 [Online] Available
through <https://www.bbc.com/news/business-55702243>
• Mankiw, N.G., 2020. Essentials of economics. Cengage learning.Lawrence,
• R.J., 2018. Applications in economics and business. In Lognormal
Distributions (pp. 229-266).
• Routledge.Franks, E. and Bryant, W.D., 2018. The Uncompensated Law of
Demand in an exchange economy. Economics Letters, 168, pp.127-131.

Thank You