Economic Review: Trampoline Prices, Supply, Demand, and Microeconomics

This report analyzes the surging prices of trampolines, as highlighted in a BBC News article, through the lens of microeconomics. It delves into the concepts of demand and supply, examining the factors that influence each. For demand, these factors include the prices of goods, consumer income, prices of substitute goods, and consumer preferences. For supply, the report considers production costs, government aid, and technology. Elasticity of demand and supply are also discussed, explaining how changes in these factors can shift the respective curves. The report concludes that rising shipping costs are significantly impacting trampoline prices and overall company revenue, underscoring the importance of understanding microeconomic principles in business.

Business Environment

Article Review - Economic Concepts
And Models
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Table of contents
• Introduction
• Trampoline's profit Issues
• Concept of Demand
• Factors Affecting Demand
• Demand Elasticity
• Concept of Supply
• Factors Affecting Supply
• Supply Elasticity
• Conclusion
• References

Introduction
Economic concept defined as
addition of all the aspects that
are outside the operations &
they are indicating the whole
function of the company.

Trampoline's profit Issues
• The article of BBC News says that the
prices of trampoline continuously
increasing and it is because of the rising
prices of shipping cost, this is analysed by
game retailer who are operating in UK.

Concept of Microeconomics
Microeconomics is the subject matter
which study the individuals,
households & the behaviour in
decision-making & better use of
resources with its appropriate
allocation.

Demand Module
Demand refers to the
concept that enlist the
choices consumer make to
obtain a particular
commodity or service,
supported by the adequate
buying behaviour of buying a
specific product.

Factors Affecting Demand
• Prices of goods:
• Consumer’s Income:
• Prices of Substitute goods:
• Taste and preferences of the buyer:

Elasticity of Demand
This is a variation in curve, where the
overall curve moves towards left or
right with changes in some aspects of
demand that includes the income of the
consumer, choices of the buyers and
the prices of the commodity.

Law of Supply
It is the theory that is linked with the
amount of supply and the prices of
commodity in target marketplace.
Factors remains same, if the rates of
specific good rises then the supply of
particular goods increases as a result
supplier will sale more product at more
prices.

Factors Influencing Supply
 Production cost
 Aids rendered by Government
 Technology used

Variation in Elasticity
This shows modifications in
supply curve along with changes
in various factors that involves
technologies used, subsidies
offered by the government and
the production cost.