Understanding Economic Concepts and Models: A Review of Demand, Supply, and Elasticity

This article reviews economic concepts and models, specifically focusing on the concepts of demand, supply, and elasticity in microeconomics. It discusses the factors affecting demand and supply, as well as the variation in elasticity. The article also highlights the impact of rising shipping costs on the prices of trampolines and the overall revenue of the company.

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
Economic concept defined as
addition of all the aspects that
are outside the operations &
they are indicating the whole
function of the company.

Trampoline's profit Issues
• The article of BBC News says that the
prices of trampoline continuously
increasing and it is because of the rising
prices of shipping cost, this is analysed by
game retailer who are operating in UK.

Concept of Microeconomics
Microeconomics is the subject matter
which study the individuals,
households & the behaviour in
decision-making & better use of
resources with its appropriate
allocation.

Demand Module
Demand refers to the
concept that enlist the
choices consumer make to
obtain a particular
commodity or service,
supported by the adequate
buying behaviour of buying a
specific product.

Factors Affecting Demand
• Prices of goods:
• Consumer’s Income:
• Prices of Substitute goods:
• Taste and preferences of the buyer:

Elasticity of Demand
This is a variation in curve, where the
overall curve moves towards left or
right with changes in some aspects of
demand that includes the income of the
consumer, choices of the buyers and
the prices of the commodity.

Law of Supply
It is the theory that is linked with the
amount of supply and the prices of
commodity in target marketplace.
Factors remains same, if the rates of
specific good rises then the supply of
particular goods increases as a result
supplier will sale more product at more
prices.

Factors Influencing Supply
 Production cost
 Aids rendered by Government
 Technology used

Variation in Elasticity
This shows modifications in
supply curve along with changes
in various factors that involves
technologies used, subsidies
offered by the government and
the production cost.

Conclusion
From the above presentation, it ca be said that the prices of trampoline are
souring which is completely impacting the overall revenue of the company. In
context to microeconomics, there are to concepts which are demand and supply and
makes sure that appropriate movement of goods and services in given marketplace

References
Anderson, D.A., 2022. Triangulated teaching: approaching environmental
economics from multiple angles. In Teaching Environmental and Natural
Resource Economics. Edward Elgar Publishing.
McEvoy, D., 2022. Positive economics, economic efficiency, environmental
economics and policy. In Teaching Environmental and Natural Resource
Economics. Edward Elgar Publishing.
Trampoline prices 'to soar 50% on shipping costs', 2021 [Online] Available
through <https://www.bbc.com/news/business-55702243>

Thank You