Understanding Economic Concepts and Models: A Case Study on Trampoline's Profit Issue

This presentation discusses economic concepts and models through a case study on Trampoline's profit issue. It covers the law of demand, elasticity in demand, law of supply, and factors that influence demand and supply. The presentation concludes that increasing prices for trampolines are influencing the entire demand and supply of goods in the target market.

Economic Concepts and Models

Table of Content
 Introduction
 Trampoline's profit issue
 Concept in microeconomics
 Law of Demand
 Elasticity in Demand
 Law of supply
 Conclusion
 References

Introduction
Economic is a examination of definite resources that
are limited and having wider uses which are,
manufacture of products, selling of goods and services
and welfare of society over particular period. It is an
simplified version of reality from which people can
observe, predict and make use of economic resources.
This is a link between people and society for welfare
of society by behaviour towards economic resources

Trampoline's profit issue
From the article BBC news it has been analysed that the
trampoline's shipping cost prices is increasing so this
influenced overall price of the product and it is mentioned by
a toy retailer. In context to the offline games the own James
Owen stated that there has been a essential change in overall
shipping cost which seems very high for a bigger size toy
like trampoline. In making good profit out of that can now a
hurdle for them due to increases in the transportation cost.

Concept in microeconomics
 Demand
 Supply

Law of Demand
According to this, it says that there is the direct relation
with the prices and the demand of commodity in target
market by which they able to gain in demand in the
target market. If prices of the product is higher than
demand for such product also rise on the other hand if
the prices of the product falls down than automatically
demand for product decreases. This is happen in the case
of luxury commodities which influence lifestyle of the
individuals.

Element which influence the demand
 Price of the goods
 Income level of buyer
 Taste or preferences of the buyers

Elasticity in Demand
This defines as change in the demand for product by
change in the various feature that are prices of the
commodity, income level of buyer and the choices and
preference in the market place. From the above
diagram it has been concluded that demand for goods
and services are most likely to be important factors on
which they able to create demand in the targeted
market.

Law of supply
There is a direct connection between level of supply
and demand for commodity according to the law of
supply. If the prices of the product is rise than supply of
such products will also rise and if the prices of the
commodities downfalls then eventually supply of the
products will also decreases. There are no variable
present for influencing change in the value of the
supply of products. Demand plays an important in the
shifting in the supply slope.

Element which influence the supply
 Costs of production
 Subsidies given by Government
 State of Technology

Change in Supply Curve
It states that change in the slop of supply curve is due to
the variation in the price value and supply quantity of
products changing in the market is mainly due to the
change in government's offering subsidies and
concessions , change in technologies and production cost
of the products In context to trampoline, increase in the
supple for the goods leads to shifting supply curve, it will
shifts from s0 to s1.

Conclusion
From the above report it has been concluded the respective presentation which
increasing prices for the trampoline is influencing the entire demand and supply of
the goods in the target market. The prices of the goods and services is impacts by
the income level of the customers. There is a direct relation with the income and
demand. If demand will increase supply also increases and demand falls downwards
than supply automatically falls down.

References
 Garretsen, H., Stoker, J.I. and Weber, R.A., 2020. Economic
perspectives on leadership: Concepts, causality, and context in
leadership research. The Leadership Quarterly, 31(3), p.101410.
 Geisendorf, S. and Pietrulla, F., 2018. The circular economy and circular
economic concepts—a literature analysis and redefinition. Thunderbird
International Business Review, 60(5), pp.771-782.
 Haggett, P., 2019. Changing concepts in economic geography.
In Frontiers in Geographical Teaching (pp. 101-117). Routledge.
 Lesser, W.H., 2018. Economic Concepts. In Marketing Livestock and
Meat (pp. 15-27). CRC Press.

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