Understanding Microeconomics: Demand, Supply, and Elasticity in Trampoline Business

This report discusses the concepts of microeconomics and how it affects the trampoline business. It covers the laws of demand and supply, factors that influence demand and supply, and elasticity of supply. The report also highlights the impact of rising transportation costs on the prices of trampolines and the demand for them.

Economic Concepts and
Model

Table of content
 Introduction
 Profit problem in trampoline’s business
 Concept of microeconomics
 Demand and supply
 Law of Demand
 Factor which influence the specific demand of trampoline
 Law of Supply
 Factor which influence the supply of trampoline
 Elasticity of supply
 Conclusion
 Reference

INTRODUCTION
In this report it mainly discuss about the main
concept of microeconomics which mainly
concentrates on the behavior of customer and
assertiveness toward the products and services.
Also it focuses on how people allot scarce funds
for the purpose of production, distribution and
consumption, both individually and jointly.

Profit problem in trampoline’s business
 On the basis of the article of BBC news, the transportation
and port congestion prices is rises and it also increases the
price of the toys which includes climbing frames, swings and
trampolines.
 According to the study of Drewry organization, the shipping
cost of 40 foot containers is increases nearly three times since
past years.

Concept of microeconomics
 The microeconomics concept is most
significant to understand.
 It analysis the attitudes and decisions
that peoples and many other businesses
create regarding the allocation of
sufficient funds.

Demand and supply
 These are the most significant and basic theory of
economics along with the overall economy of the
nation also which are based upon the concept of
demand and supply.
 This demand and supply concept create problems in
trampoline product.

Law of Demand
 From the figure of law of demand explain about
the changes in demand of fluctuation after
changing the price of the trampoline prices due
to increase in the transportation cost.
 On that basis the prices of trampoline is increase
from 40 – 50 % which means the demand of the
trampoline decrease due to increase in the prices
of trampoline.

Factor which influence the specific demand of trampoline
 Customer income
 Change in Price of related products
 Customer estimations with regard to future prices

Law of Supply
 From the figure of law of supply state
that the increases in prices of
trampoline may rise in quantity supply
of trampoline.
 The prices of trampoline also influence
the quantity supplied of trampoline
toys.

Factor which influence the supply
of trampoline
 Change in supply of related products
 Workers efficiency
 Improvement in technology
 Elasticity
 Elasticity of demand

Elasticity of supply
 Elasticity of supply: It establish a
quantitative comparison among the
supply of product and their prices.
Basically, it show the many variation in
supply along with the variation in
product price by utilizing the elasticity
concept.

CONCLUSION
 The above report concluded that the concept of microeconomics is most important to
know and examine the decisions and behavior of consumer and several other
companies regarding the finding of limited resource.
 In another instance it discuss about the fundamental microeconomics factor like
demand, supply and elasticity it assist the company to examine the trends and customer
attitude and behavior.

REFERENCES
 Knights, P.F., 2020. Short-term supply and demand of graduate mining engineers
in Australia. Mineral Economics. 33(1), pp.245-251.
 Smith, P. and Salloum, M., 2020. Legal update: Loans repayable'on
demand'. Australian Restructuring Insolvency & Turnaround Association
Journal. 32(3), pp.30-32.
 Horbachov and et.al., 2022. Framework for designing sample travel surveys for
transport demand modelling in cities. Transportation. 49(1), pp.115-136.

Thank you