Microeconomics and Trampoline: Understanding the Impact of Demand and Supply on Profit

Business
Environment

INTRODUCTION
• Economics referred to the evaluation of resources which are required for producing the services
that can full fill the targeted market demands.
• Economics identifies the scarcity of such resources and evaluate that the demand and supply of
such products are occurring in a flow. There may occur a variety in the complex issues which occur
within the large size markets.
• Microeconomics and macroeconomics are the two aspects of economy, which make sure that the
employees of the organisations are working effectively for targeted marketplace (Draper, Clement
and Alexander, 2020).

PROFIT ISSUES WITH TRAMPOLINE
• The reason were linked with increased cost of shipping of trampoline globally,
which was referred by a game retailer of a small business in market.
• George Godman, the owner of respective organisation operating a toy retailing
business referred that the transportation cost in large size toys are increasing.
• The trampoline and climbing frames like large toys cost high transportation rate.
The majority of toys retailers of UK confirmed a huge kind of lose from market
which is responsible for having impact over the profit of the toy industries.

MICROECONOMICS CONCEPT
• Microeconomics is the study of certain factors which have effect over
the outcomes of business plan.
• It analyse the outcomes of individual's choices in context with certain
changes related with prices, resources, production methods etc.
• Microeconomic subgroup consist of seller, buyer and owners of
enterprises.
• The business of an organisation is dependent on the demand of its
products (Augier and Francois, 2019). Higher the demand of the
product, higher will be the profit of organisation and vice versa.