Microeconomics Concepts and Trampoline's Profit Issues

This presentation discusses the impact of the business environment on trampoline's profitability. It covers microeconomics concepts such as demand, supply, elasticity, and factors affecting them in the context of trampoline's profit issues. The presentation also provides insights into the factors affecting trampoline's supply and profitability. The subject is Business and the course code is BMP4003. The presentation is relevant for students studying microeconomics, business, and related fields.

BUSINESS
ENVIRONMENT

CONTENTS
 INTRODUCTION
 Trampoline's profit Issues
 Concepts in Microeconomics
Demand
 Factors affecting demand for trampoline
 Elasticity in Demand
 Supply
 Factors affecting supply of the specific good
 Change in Supply Curve
 CONCLUSION
 REFERENCES

INTRODUCTION
The term "business environment" refers to
the whole of all elements that are external
to businesses and have an influence on
their overall operation (Kreps, 2019).
Competitors, the government, consumers,
suppliers, as well as cultural, legal, and
technical factors are all factors to consider.

Trampoline's profit Issues
According to BBC News, shipping costs are growing,
which is causing the entire cost of a trampoline to
rise. This is something that one of the game
retailers is aware of. According to Owen, an outdoor
toy owner, there has been a major rise in shipping
costs, and port congestion can be high for large-
scale toys such as climbing frames and trampolines,
which are getting more expensive, preventing
consumers from purchasing trampolines.

Concepts in Microeconomics
Demand
 Demand: Demand is defined as an
individual's desire to purchase goods
and services supported by adequate
purchasing capacity to do so while all
other circumstances stay constant.
 Law of Demand: It states that the pricing
and quantity of products and services
have an inverse relationship (Cowell,
2018). These are some of the features
that are comparable in the market and
also have a certain approach.

Factors affecting demand for
trampoline
 Price of the commodity : The customer is eager to pay the offered
goods and services in order to obtain better products, hence there is
an inverse relationship between the pricing and quantity demand of
the given items.
 Income of the consumer: The demand for goods and services and the
consumer's income are said to have a positive connection (Shiu,
Chow, and Watson, 2020). When a consumer's income rises, so does
the demand for specific goods and services, and vice versa.

CONTD.
 Price of related goods: In general, there are two types of
complementary items that are utilised and have an influence on
the sale of commodities (Becchetti, Bruni, and Zamagni, 2019).
 Taste an preferences of the customers: There are a number of
factors that might influence a customer's taste and preferences,
as well as the buyer's decision to purchase more or fewer goods
and services.

Elasticity in Demand
This is also known as a shift in the demand curve, and
it refers to a movement in the whole demand curve to
the right or left, as a result of a change in specific
factors such as income, products pricing, buyer taste,
and preferences (Samsu, Ahmad, and Hamdan, 2021).

Supply
 The primary aspect that describes the whole
accessible amount for a certain commodity to its
consumer is supply (Wiese, 2021). This also had to
do with the volume of stock available at the
specified pricing, which allowed them to maintain a
bigger profit margin in the huge market.
 Law of supply: It states that the supplied pricing
and the quantity supply of the items have a
positive connection (Ainsworth, 2020). Because all
other factors stay constant, when the price of a
specific item rises, the quantity supply of that
commodity rises as well, because the producer will
sell more products

Factors affecting supply of the
specific good
 Costs of production: When a company has enough raw materials or pays its employees fairly,
it may give any amount to their customers (Bauer, 2018).
 Government Subsidies: It refers to a benefit provided by the government in order to lower
the total cost of manufacturing. It is connected to the price of subsidies and the supply of the
offered commodities in a favourable way.
 Technology: This refers to technological innovation and improvement in order for a company
to efficiently minimise operational costs.

Change in Supply Curve
 This is characterised as a shift in the supply
curve caused by changes in numerous factors
such as manufacturing costs, government
subsidies, technology, and corporate objectives
(Grenestam, 2019).
 The supply curve will move from s0 to s1 as
the trampoline supply grows. When the supply
of commodities decreases, the curve shifts
from s0 to s2.

CONCLUSION
According to the information shown above, rising trampoline prices are affecting
overall supply and profitability. Demand and supply, as well as demand and supply
elasticity, are two ideas that reflect the total market scenario. The price of a product,
the buyer's income, and their expectations are all factors that influence total demand
and supply of a specific good. The cost of production, government subsidies, and
technology are all affecting supply.

REFERENCES
 Kreps, D.M., 2019. Microeconomics for managers. Princeton University Press.
 Besanko, D. and Braeutigam, R., 2020. Microeconomics. John Wiley & Sons.
 Cowell, F., 2018. Microeconomics: principles and analysis. Oxford University Press.
 Shiu, A., Chow, J. and Watson, J., 2020. The effectiveness of animated video and written text
resources for learning microeconomics: A laboratory experiment. Education and Information
Technologies, 25(3), pp.1999-2022.
 Becchetti, L., Bruni, L. and Zamagni, S., 2019. The microeconomics of wellbeing and
sustainability: Recasting the economic process. Academic Press.
 Wiese, H., 2021. Cooperation as the central focus of microeconomics. In Advanced
Microeconomics (pp. 1-5). Springer Gabler, Wiesbaden.
 Bauer, M.J.R., 2018. Principles of microeconomics.
 Grenestam, E., 2019. Essays in Applied Microeconomics (Doctoral dissertation, Lund
University).