This report examines the profit issues faced by a trampoline business, focusing on the impact of increasing overall costs due to high shipping costs and port congestion. It delves into microeconomic principles, including demand, supply, and elasticity, to analyze how these factors affect the trampoline market. The report highlights the inverse relationship between price and demand, illustrating how changes in price influence consumer behavior. Furthermore, it discusses the elasticity of demand and supply, emphasizing how external elements like production costs, government subsidies, and technological advancements can shift the supply curve and impact the profitability of trampoline businesses. Concluding that rising prices of larger toys affect trampoline sales, the report underscores the importance of understanding demand and supply dynamics for businesses in this sector. Desklib offers a range of solved assignments and past papers for students.
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