Microeconomic Analysis: Trampoline's Profit Issues and Market Models

This essay provides an overview of economic concepts and models, focusing on the profitability issues faced by trampoline retailers due to rising shipping costs. It delves into microeconomic principles such as the law of demand, elasticity, and the law of supply, explaining how these factors influence the trampoline market. The analysis also covers shifts in the supply curve due to changes in production costs, government subsidies, and technological advancements. The essay concludes that fluctuating trampoline prices significantly impact the overall supply and demand dynamics, influenced by consumer income levels, preferences, and the prices of related products and services. Desklib offers a wide array of solved assignments and study tools to aid students in understanding such complex economic scenarios.

Economic Concepts and Models

INTRODUCTION
Economics is the study of scarcity of resources, production of
goods and services, consumption and the welfare within the
economy in given period of time. This is consistently depends
upon the great variety of issues which is concerned to the
society.

Trampoline's profit Issues
From the article of BBC News, this is being said that the with the
rise in the shipping cost of the trampoline leading to rises the overall
prices of trampoline in the large market and it is being known by
one of the game retailer. In consideration to Outdoor games, James
Owen is the owner, who says that there is variation in the entire
transportation ad port congestion that is comparatively high for big
size toy which are climbing frames and trampoline and many more.

Concepts in Microeconomics
This is the behaviour of the study the understand the
household, people and the better decision-making and the
accurate allocation of the given resources in the target
market which is directly used in the large market and they
are dealing with the economic issues that is related to the
country and the individual

Law of demand
There are certain factors which impact the demand of
commodities which are illustrated below:
• Price of the goods
• Income level of buyer
• Taste an preferences of the buyers

Elasticity in Demand
This is referred to the change in the demand of the consumer
due to the huge impact various factors which is impacting the
demand of goods in the target market.

Law of supply
This law says that the given prices and the supply of
goods are positively related to each other as when the
given prices increases then there is rise in the supply
of goods in the large market.

Factors affecting supply of the specific good are as follows:
• Costs of production
• Subsidies given by Government
• State of Technology

Change in Supply Curve
This is being defined as the change in the supply curve
due to change in the given prices ad the supply of given
goods in the target market. This is due to the change in
the subsidies offered by the government, cost of
production and the state of technology used by the
suppliers.

CONCLUSION
From the above presentation, it is being summarised that the rising prices of
trampoline is influencing the entire supply and demand of goods in the target
market. As the given prices of products and services, income level and their
preferences for the products impact the overall demand of the trampoline in
the market.

REFERENCES
• Davis, J., 2018. Communicating economic concepts and research in a challenging
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• Garcia-Peréz, M. and et. al., 2020. Sustainability, business models, and techno-economic
analysis of biomass pyrolysis technologies. In Sustainable Business: Concepts,
Methodologies, Tools, and Applications (pp. 1339-1373). IGI Global.