Understanding Economic Concepts and Models: A Review of Trampoline's Profit Issues

This presentation reviews the economic concepts and models related to the impact of shipping costs on trampoline prices. It covers the concept of microeconomics, market structure, elasticity, and the different types of market structures. The presentation concludes with a summary of the key points discussed.

BMP4003 Business Environment
Assessment 1 - Individual Presentation

Article Review - Economic Concepts And
Models
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Contents
• Introduction
• Trampoline's profit Issues
• Concept of microeconomics
• Market structure
• Elasticity
• Elasticity in demand
• Elasticity in supply curve
• Conclusion
• References

INTRODUCTION
Economics is the concept of scarcity and
implications of certain resources production
consumption and welfare over a period of time.
There are various complex issues which are
emerging in the marketplace in which demand
and supply are the two major concepts of micro
economics that ensures a better flow of goods
and services in the target market.

Trampoline's profit Issues
From the article of BBC News, this is being derived that
rising prices of trampoline occur due to the hike in the
shipping cost of the trampoline in the United
Kingdom(Trampoline prices 'to soar 50% on shipping
costs', 2021). This has been known by one of the game
retailer named James owen, they are operating their business
and toy manufacturing company. Outdoor toys is the UK toy
retailing company in which it is being estimated that there is
a rise in the ship in cost by 40 to 50% on a large sized tour
that are climbing frames and trampoline which is leading
reducing the overall supply of Trampoline in the
marketplace.

Concept of Microeconomics
It is the concept which explained that individual
made their choice in consideration to the change in
prices, resources, method of production and so on.
This also includes seller and buyer who make a
transaction of selling and buying in the
marketplace(Dermendzhiev, 2021).

Market structure
Market structure cover the concept of micro economics as this defines know how the market is operating and what
are their attributes for say number of buyers, type of goods, barrier in entry and exit of new firm and so on.
• Perfect competition:
• Monopolistic market
• Oligopoly market
• Monopoly market

Elasticity
This is the integral part of micro economics that explain the change in the amount of demand and change in the
supply of good sense services.
• Elasticity of demand:
• Elasticity of supply:

Elasticity in Demand
As per this diagram, the demand curve shifts to
the left from d0 to d1. It is the concept which
explain that change in the prices of goods impact
that impact the change in the demand and with
this the demand curve will shift to the right or left.
It can be due to the change in various factors that
can be price of substitute income of the consumer
taste and preferences of the buyer future
expectations of the conservatives and so on.

Elasticity in Supply Curve
These are the concept which explain their change in the
prices impact the change in the overall supply of goods
in the market(Otero, 2022). This basically defines that
quantity supply can be changed due to the change in
prices and this can be leads to variation in the different
factors that are technology used cost of production,
government subsidies, type of firm and so on that are
impacting the overall supply of goods.

Conclusion/Summary
It is summarized from the above presentation that prices of the trampoline increasing due to the shipping cost
for the same also increases. This is impacting the overall demand and supply in the large. There are certain types
of market structure that are being used by many of the companies and toy retailing companies operating in the
monopolistic market.

References
Online:
• Trampoline prices 'to soar 50% on shipping costs', 2021 [Online] Available
through <https://www.bbc.com/news/business-55702243>
• Dermendzhiev, A., 2021. Space, Economic Concepts and Social Development
Models.
• Otero, S., 2022. The law of supply and demand rules monolignol transport.

Thank you