BMP4003 Business Environment: Economic Concepts, Models & Trampolines

This report examines the economic factors influencing trampoline prices, focusing on an article discussing rising shipping costs. It explores microeconomic principles, including the law of demand, factors affecting demand (pricing, income, preferences), and elasticity. The report further discusses supply, the law of supply, and factors affecting supply (production costs, government subsidies, technology). It concludes that increased trampoline prices impact overall supply and demand, influenced by customer income and merchandise costs. Desklib offers a wealth of similar solved assignments and study resources for students.

BMP4003 BUSINESS ENVIRONMENT

ARTICLE REVIEW - ECONOMIC CONCEPTS AND MODELS
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TABLE OF 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
Economics is defined as study of the
certain resource which are limited and
having the diversified use such as
producing merchandises and amenities
and the production growth and the
wellbeing over specific time- period.
Many different types of difficult issues of
society are related to economics.

TRAMPOLINE'S PROFIT ISSUES
In an editorial of BBC news it was examined that
shipping cost of trampoline is increasing that is
completely influencing the overall increases in
current prices of trampoline and it’s being stated
by a toy seller. In relation to the Out-of-doors
games, the proprietor James Owen stated about a
vital alteration in the overall delivery cost and the
port congestion which are comparatively high
when delivering big toys like the trampolines,

CONCEPT OF MICRO ECONOMICS
It’s general behaviour of the study which
understand the household, individual & the
making impressive decisions and the
distribution of the assets in the targeted
market-space.

LAW OF DEMAND
As per the law of demand, it states about
the inverse connection in the values and
the demand for goods in targeted
marketplace through which they can
increase the demand inside target
marketplace.

FACTORS AFFECTING DEMAND
There are certain elements which has impact on
demand for commodities which are illustrated
here:
• Pricing of products:
• Customer’s level of earning:
• Perception an preferences of buyers:

ELASTICITY IN DEMAND
Elasticity in demand means the
change in the demand of goods
because of the change in the many
aspects like prices of the goods,
customer’s level of earning and their
preferences in the current market.

SUPPLY
Supply is a major part in economics
which details the entire sum of
commodities that are produced inside
an organisation & they are additionally
available for selling.

LAW OF SUPPLY
According to it, there is straight
linking in the magnitude supplied and
the good’s pricing. There’s none such
various in other aspects as the change
in the prices impact the supply of
goods.

FACTORS AFFECTING SUPPLY
Factors affecting supply for precise good are
mentioned below:
• Productional cost
• Government grants and subsidiaries:
• Technological advancements: