BMP4003 Business Environment: Economic Analysis of Trampoline Market

This report analyzes the economic factors impacting the trampoline business, focusing on concepts of microeconomics, demand, and supply. It addresses the rising costs of trampolines due to factors like increased shipping prices and port congestion, examining how these issues affect demand elasticity and overall market dynamics. The report utilizes economic principles such as the law of demand and supply to explain how price changes influence consumer behavior and the availability of trampolines. Factors affecting both demand (price, taste, income) and supply (government policies, production costs) are discussed, providing a comprehensive overview of the challenges and opportunities within the trampoline market. The analysis also references external sources to support its findings, highlighting the impact of global events like Brexit on the industry. Desklib offers a wealth of similar reports and study tools to aid students in understanding complex business environments.

BMP4003 Business Environment
Assessment 1 - Individual Presentation

Article Review - Economic Concepts And
Models
Name:
ID:

Contents
• Introduction
• Trampoline's profit Issues
• Concept of microeconomics
• Law of Demand
• Factors affecting demand
• Elasticity in demand
• Supply
• Law of Supply
• Factors affecting supply
• Change in supply curve
• Conclusion
• References

INTRODUCTION
Trampoline was invented by George Nissen of Cedar
Rapids, Iowa, in 1930 during attending a circus.
George was 16-year-old when an idea started to form
in mind of young gymnast. Firstly, it was called
“tumbling device” after 75 years George granted
patent trademark for ‘Trampoline”.

Trampoline's profit Issues
As per to the Article of the BBC Business webpage;
Trampoline cost ‘to rise 50% on delivery prices’ –
In UK as per to one game store the shipping price
of trampoline is higher than before. James Owen,
owner of the Outdoor Toys, says trampolines and
climbing, swings toys will be more expensive as
high transport will cost port congestion. Trampoline
prices can be high by 40-50%, James Own told
BBC 5 Live’s Wake Up to Money

Concept of Micro economics
Microeconomics is the term which implicates the
study of decisions and incentives specially when
they effect the distribution and utilization of
resources (Cherunilam, 2021). This concept shows
why and how different products has different price,
how businesses and individuals conduct and bring
advantage from efficient exchange and production
and how individuals cooperates and coordinates
from the best way to understand the complete
meaning of macroeconomics.

Law of demand
This states that rise of the cost, lower the amount
required. This happens due to which it will
demising MU. That is because of the consumer
uses the primary unit of an economic products, the
consumer buying to help their effective and crucial
require leading, and then every extra element is
used for the product to serve sequentially low-
value ends.

Factors affecting demand
Factor affecting demand are stated below -
• Price of Product
• Taste and Preferences
• Consumer’s Income

Elasticity in Demand
The state where price rises and translate into falling
demand is called Demand Elasticity. If the 50% get
increase in trampoline cost that causes the quantity
of trampoline required to decline by 50%, the
demand elasticity of the trampoline is 1. If the 50%
raise in trampoline cost only decline the amount
required by 10%.

Supply
This is the basic economical procedure that
defines the global quantity of the particular
products or facilities that are available to
consumers. Supply is related to the quantity
accessible at particular amount or cost
accessible across a level of cost if it’s
showed on the chart.

Law of supply
This is a microeconomic components
which termed that, all another factor
being identical, as the cost of a facility
rise, the amount of products or
facilities that dealers provide that will
be increased and vice versa.

Factors affecting supply
Factors affecting supply are as follows -
• Government’s Policies
• Cost of production
• Price