Impact of Increasing Shipping Costs on Trampoline Prices and Microeconomic Concepts
Verified
Added on  2023/06/11
|9
|2097
|194
AI Summary
This article discusses the impact of increasing shipping costs on trampoline prices and microeconomic concepts such as demand, elasticity of demand, supply, and elasticity of supply. It also covers the factors affecting the demand and supply of trampolines in the market.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Economic Concepts and Models
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
INTRODUCTION Economics is the analysis of the scarcity of resources which are meant to produce the goods and services so that they can full fill the needs and demand of the target market.This basically evaluates the demand and supply in the market and flow for the same. There are various variety of complex issues that are emerging in the large market. Microeconomics and macroeconomics are the aspects which ensures the better working of the employees in the target market. This respective presentation will cover the articles which is related to the souring prices of trampoline due to the increasing shipping cost of trampoline for the same. This presentation also cover the concept of microeconomics in which it illustrate the demand, elasticity of the demand, supply elasticity of supply. MAIN BODY Trampoline's profit Issues This is being stated from the article of BBC News, souring prices of trampoline is taking place due to the increasing shipping cost of the trampoline around the world. This is being known from the game retailer who is operating its business in the market. In context to Outdoor Games, James Owen is the owner of this company who is operating in toy retailing industry. Major change in the entire transportation cost and it is high specially on the large size toy that are climbing frames and trampoline. All the toy retailer are operating in the UK are facing huge loose in the market which is impacting the entire profitability of the industry. According to the report, it is being derived that the rise in the trampoline prices by 40-50% and the toy retailer are getting nay space out of China and they are not getting nay of the consideration out of the Chine by which they can ensures their profitsand revenue. Mr. Owen also given the various explanation that the large variety of products are being produced in the market but rising on the hike in the given prices of trampoline which is impacting the overall functionality of the company. Concepts in Microeconomics It is the study which analyse that what is likely to happen as the individual make choice in relation to the certain change which is related to the price, resources, method of production and so on. Individual are the microeconomics subgroup which includes the seller, buyer and business owners.
Demandis defined as the choice of the individual by which they can buy the particular products and services and also having the effective purchasing power to buy the specific goods and services and also have the capacity to buy the same. This is being stated that when the given prices of products tends to increase then the particular demand of goods and services decreases. It is being analysed from on of the article, demand for Chinese goods is keep rising around the world and they are basically estimating the given situation with the better analysis of shipping capacity. According to Law of demand, there is the indirect relationship in the price & the quantity of goods in the target market. There are certain aspects which are similar in the market and also having the appropriate approaches in the given market. Following are the factors which is influencing the particular demand of trampoline which are explained as follows: ï‚·Price of the given goods:These are the commodities which are being purchased to the large customer base by which they can rightly ensures that they are operating in the market as well and generating huge profitability in the target market. This is being known that the consumer is always pick the goods which are affordable to them so that they can rightly ensures the huge profitability and revenue. In relation to trampoline, when the particular prices of the commodity is rising day by day that is making huge impact on the
buying behaviour of the consumer. This is clear that when the prices of 40-foot long container is getting triple since in the particular year. It is being stated by the report of Drewry that the given prices of the trampoline increases then the demand for such goods tends to decreases in the target market. ï‚·Income of the consumer:It is given that the respective prices of goods and their demand in the target market. It is being stated that when the income of the consumer tends to rise then the demand of their particular goods increases in the target market. In context to trampoline,peoplearehavinghighincomelevelthatismakingtheeffective consideration among the quantity products in the sufficient income level. ï‚·Price of related goods:There are basically two types of goods such as substitute goods and complementary goods. Substitute goods are those goods which is being replaced by the other goods as they are basically offering the same level of satisfaction in the target market.Thus when the prices of substitute goods tends to rise then the demand for current goods increases in the target market. On other hand, complementary goods are those goods which are used as the conjunction of original goods which is giving similar level of satisfaction in the target market. Thus, when the prices of complementary goods increases then the demand for the current goods reduces as the overall prices of such goods tends to rise in the target market. ï‚·Taste and preferences of customer:These are the aspect which includes the choices and the taste of buyer when tends to have more consideration in the given marketplace. They respectively tends to buy less amount of goods and services. When the people are liking the products then the respective demand for the same tends to rise in the market. On other hand, outdated products tends to reduces the demand of goods in the target market and companywillfacehugelooseinthegivenmarketsegment.Inconsiderationto Trampoline, When the people are choosing trampoline over other goods then the demand for the same tends to rise in the large market. Elasticity in Demand This is also known as the change in the demand of goods tends to rise in the market due to change in the various aspects which includes the income of consumer, prices of given goods, choices of the buyer and future expectations of the consumer. When there is the impact of such aspects on goods then the demand of such goods tends to fall or rise in the respective market
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
place and this is being derived from the market. In relation to Trampoline, change in the demand of commodities shift thedemand curve to right or left which leads to increase or decrease the entire demand of goods in the target market. ï‚· This is being derived from the above given diagram that increase in the demand of goods tends to shift the demand curve to the right as this is showing the positive impact of goods in the target market. In context to trampoline, when people are purchasing more then the demand for trampoline tends to rise and rightward shift to the demand curve from d0 to d1 as it is showing the positive impact on the entire demand curve of trampoline. Supplyis the aspects that analyse the total available amount of goods and services to their prospective buyer. This is basically related to the entire amount of goods which are available for the further sale in the given market place and due to which they can ensures the huge revenue and sales. Law of supply: It is being derived from the large market pace that the supply is having the positive consideration in the given prices of goods in the target market which leads to have the change in the supply of goods in the target market. There is no such change in the other factors as rise in the prices of goods tends to increase the overall supply of goods in the target market. It is being stated that seller sell their products when there is hike in the prices of their products. On other
hand, fall-down in the given prices of goods tends to decrease the supply of goods in the target market. In context to trampoline, increase in the given prices of trampoline tends to enhance the overall supply of goods in target market. Factors affecting supply of the specific good are as follows: ï‚·Production cost:It is being driven that the when an organisation or its manufacturer is having the sufficient raw material and other factor of production then they will supply more in which they are operating in. Thus, in context to trampoline, when the supplier is having the sufficient raw material then the respective supply of goods tends to rise in the market. On other hand, when the supplier do not have the limited raw material and talented employees then the supply for their goods tends to fall-down in the market. ï‚·Government Subsidies:It is defined as the direct and indirect payments which is being offered by the government so that supplier can supply more of their goods and services in the target market and leads to attains the overall profitability in the target market.In contexttotrampoline,whenthegovernmentisofferingmoresubsidiesthenthe respective supply of goods tends to rise as the consumer will supply more to their potential customer in order to generate more revenue and profitability. ï‚·State of Technology:In the current market, new technology are taking place in the market they are over taking the other firms which are operating in the given market. When the firm is using the advance technology for producing the rightgoods and services then the supply of goods increases as they are using appropriate method of
expectation by which they can do the bulk purchasing, quick billing and so on. In context to trampoline, when the manufacturer are offering the innovative and easy to use goods which leads to have more success in the market. On other hand, when the suppliers are operating its business with the help of certain technology then this leads to increase the overall consideration in the market. Change in Supply Curve: This is also called as the elasticity of supply due to the change in the market which directly linked with the change in the given prices and the supply of goods & services.As the supply curve will shift to right as increase in the given supply of goods in the large market and on other hand leftward shift in the supply curve tend to slow-down the overall supply of goods in the market. It is being analysed from the above given curve that when the price of product increases which leads to rise the overall supply of goods in the target market. Where as the given prices of trampoline decreases then the overall supply for the same also decreases in the marketplace. CONCLUSION From the above report, it is being derived that the increasing prices of trampoline influencing the overall supply and ensuring more profits to the company. Demand and supply are the two wheels of microeconomics, which is ensuring the effective flow of goods and services in
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
the target market. Given price of commodity, income of consumer, taste and preferences of buyer are the certain aspects which is directly impacting the demand of goods in the market.
REFERENCES Books and Journals Hofmann, F., 2019. Circular business models: business approach as driver or obstructer of sustainability transitions?.Journal of Cleaner Production,224, pp.361-374. Haggett, P., 2019. Changing concepts in economic geography. InFrontiers in Geographical Teaching(pp. 101-117). Routledge. Online: Trampolineprices'tosoar50%onshippingcosts',2021[Online]Availablethrough <https://www.bbc.com/news/business-55702243>