Exploring Economic Concepts and Models in Trampoline Business

This presentation discusses the concepts of microeconomics, including demand, supply, and elasticity, in the context of Trampoline business. It explores the factors affecting demand and supply, and the impact of price on consumer behavior. The presentation also highlights the rising cost of transportation and congestion prices affecting the prices of various toys, including trampolines.

BMP4003 Business Environment
Assessment 1 - Individual Presentation

Article Review - Economic Concepts And
Models
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Contents
•Introduction
•Profit issue in Trampoline's Business
•Concepts of microeconomics
•Demand and supply
•Law of demand
•Factors responsible for demand of Trampoline
•Supply
•Law of supply
•Factors affecting supply of trampoline
•Elasticity and Elasticity of Demand & Supply
•Conclusion
•References

INTRODUCTION
The aim of this presentation is to
explore various concepts of
microeconomics which majorly
focuses on the buying behaviour
of customers towards specific
product or service.

Profit issue in Trampoline's Business
As per the article of BBC news,
the cost of transportation and
congestion prices are rising and it
affects the prices of various toys
such as swings, climbing frames
and trampoline.

Concepts of microeconomics
There are various concepts
which microeconomics
undertakes such as demand,
supply, allocation of
resources, labour, production
and equilibrium.

Demand and supply
The whole concept of
business is based on
demand and supply and is
used by every business in
order to ascertain market
demand and product supply.

Demand
It may be referred to the
quantity of consumers
who are able to and
willing to buy products
at different prices in a
particular period of
time.

Law of demand
The theory of demand and
supply demonstrates that
demand of commodity is
mainly depends on its price as if
the price of commodity
increases, there can be seen in
decline in price of product or
vice versa.

Factors responsible for demand of Trampoline
• Change in price of similar
product
• Customer income
• Forecasting of future prices

Supply
It may be referred as a
fundamental economic concept
which involves total amount of a
particular good or service which is
available to consumers. In case of
trampoline, it demonstrates how
much pieces are available for
consumers.

Law of Supply
This fundamental concept states
that higher price of commodity
will induce producer to supply
higher quantity to market.
Businesses seeks to elevate
revenue and it is needed to
produce more for consumers.

Factors affecting supply of trampoline
• Technological upgradation
• Efficiency of workers
• Change in supply of substitute
products

Elasticity
It is an economic concept
which can be used to measure
change in aggregate quantity
demanded of product or
service with movement in
price.

Elasticity of demand
It refers to the degree to which
demand responses to a change
in economic factor. Along with
all aspects, price is the most
common economic factor which
can be used to determine
elasticity.

Elasticity of Supply
It can be used in measuring
responsiveness to supply of
goods and services after
fluctuation or change in market
price. The supply of a
commodity will increase when
the price rises.

CONCLUSION
From the above
presentation, it can be
concluded that concept of
microeconomics is crucial
to study as it helps in
understanding consumer
behaviour based on
various aspects.

References
• Besanko, D. and Braeutigam, R., 2020. Microeconomics. John Wiley & Sons.
• Cowell, F., 2018. Microeconomics: principles and analysis. Oxford University
Press.
• Borland, J., 2020. Microeconomics: Case Studies and Applications. Cengage
AU.
• Makowskis and et.al.,., 2017. Profit intensity and cases of non-compliance with
the law of demand/supply. Physica A: Statistical Mechanics and its
Applications, 473, pp.53-59.
• Buechner, M.N., 2018. A comment on the law of supply and demand. Journal
of Philosophical Economics, 11(2), pp.67-80.
• Gilroy, S.P., Kaplan, B.A. and Reed, D.D., 2020. Interpretation (s) of elasticity
in operant

Thank you