Understanding Microeconomics: Law of Demand, Factors Affecting Demand, Elasticity in Demand, Law of Supply, Factors Affecting Supply, Change in Supply Curve

This presentation covers the concepts of microeconomics including the law of demand, factors affecting demand, elasticity in demand, law of supply, factors affecting supply, and change in supply curve. It also discusses how these concepts apply to the rising shipping costs affecting Trampoline's profit issues. The presentation concludes by emphasizing the importance of understanding demand and supply in the economy.

ECONOMIC CONCEPT AND MODELS

TABLE OF CONTENTS
• Introduction
• Trampoline's profit Issues
• Concept of microeconomics
• Law of Demand
• Factors affecting demand
• Elasticity in demand
• Supply
• Law of Supply
• Factors affecting supply
• Change in supply curve
• Conclusion
• References

INTRODUCTION
Economics is the study of scarcity and its
implication for the accessibility of
resources, production of commodities and
the welfare over time. It studies the how
the individuals, businesses, government
and the nation are making choice related
to the resource allocation.

TRAMPOLINE'S PROFIT ISSUES
While studying the BBC News, rising shipping
cost is implying in the rise in the given prices of
Trampoline and it is being known by one of the
game retailer in the market. Owen is the toy
owner who have started there is the huge
variation in the transportation cost & port
congestion can be high for the huge size toy.

CONCEPT OF MICRO ECONOMICS
Microeconomics is the concept which
ensures the operating various functions with
the sole aim of fulfilling the supply and
demand within the market. Demand is
defined as the interest and desire of the
individual to buy the particular commodity
backed with the sufficient purchasing power.

LAW OF DEMAND
Law of demand states that there is the inverse
relationship in the prices and the quantity
demand of the particular goods fall down in the
large market, other factor remains constant.
When the given prices of goods increases then
the demand for trampolines tends to fall down
and vice-versa.

FACTORS AFFECTING DEMAND
There are certain factors which impact the
demand of the given goods are illustrated
below:
• Price of the commodity
• Income of the consumer
• Taste and preferences of the customers

ELASTICITY IN DEMAND
It is defined as the variation in the
demand curve to the right or left due to
the change in the certain factors. It is
being change in the certain factors which
includes the change in the taste and
preferences, income of the consumer.

SUPPLY
Supply refereed to the available amount of goods
and services for the sale at the given prices so that
an organisation can generate higher profits and
revenue.

LAW OF SUPPLY
Law of supply: As per this law, there is
the positive relationship in the prices
and the quantity supply of goods. When
the given prices of goods tends to rise
then the supply of the given goods also
increases as the supplier will sale more
in the large market.

FACTORS AFFECTING SUPPLY
Factors affecting supply of the specific good
are as follows:
• Costs of production
• Technology
• Government Subsidies

CHANGE IN SUPPLY CURVE
This is defined as the change in the supply
curve due to the shift to the right or left of
the supply due due to change in the various
factors which are cost of production,
technology, government subsidies etc.

CONCLUSION
From the above presentation, it is being concluded that souring prices of
trampoline affecting the supply in the market. Demand and supply are two
main aspects of economies which ensures the flow of commodities and
services in the market. Moreover, demand is being impacting due to the price
of commodity, price of related goods, income of the consumer.

REFERENCES
Online:
Trampoline prices 'to soar 50% on shipping costs', 2021 [Online] Available through
<https://www.bbc.com/news/business-55702243>
Books and Journals
• 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

THANK YOU