Microeconomic Analysis: Demand, Supply, and Trampoline Price Impact

This report examines the factors influencing trampoline prices through the lens of microeconomics, focusing on the principles of demand and supply. It discusses how changes in shipping costs, as highlighted in a BBC News article, impact trampoline prices. The report covers the law of demand, factors affecting demand, elasticity in demand, supply, the law of supply, and factors influencing supply. It explains how shifts in the supply curve affect market dynamics. The analysis emphasizes the interplay between demand and supply in ensuring the effective flow of goods and services, providing a comprehensive overview of the microeconomic forces at play in the trampoline market. Desklib provides access to more solved assignments and study resources for students.

ECONOMIC CONCEPT AND MODELS

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 the study of the social
sciences that emphasizes on few
subject matter which includes the
production, distribution, and usage of
the goods and services. Economics is
to full fill the demand and the supply
of the people in the society.

TRAMPOLINE'S PROFIT ISSUES
In the article published by the BBC News, it
stated that would be increase in the prcie of
the trampoline. The reason for the same
would be as the shipping cost of delivering
the trampoline will raise around the world
wide. The knowledge about the same is
gathered from the game retailer, who is a
operating its business in the market.

CONCEPT OF MICRO ECONOMICS
Microeconomics is a study of making
decision of allocating resources to an
individual consumer. The economists
analyze how the individual consumers
react to the change in the prices and
what is the need to demand.

LAW OF DEMAND
Demand is an economic principle which
showcase the desire and willingness of the
consumer to buy a specific product and
even pay the asked price for the good.
Demand can mean either market demand
for a specific good or aggregate demand for
the total of all goods in an economy.

ELASTICITY IN DEMAND
This is referred to as the receptiveness of
the level of product in demand in context
of product to the variation under specific
variable on which demand is dependent.
It is also referred to as the ratio of
variable on which the request is reliant
on.

SUPPLY
Supply is concept which is fundamental
economics and states the total quantity of
a particular good or service which is
available to the consumers. In this case
the supply is associated to particular
value or variety of value.

LAW OF SUPPLY
This law indicates that rise in level
of quantity supplied results in rise
in quantity of price. In this
economic law, every other factor is
constant that the rise in prices also
expands the supply.

CHANGE IN SUPPLY CURVE
Even this is know as the elasticity of
supply due to the change in the market
which is directly linked with the change
the cost and the supply of goods &
services. The supply curve will shift to
right as an when there will increase in the
given supply of Trampoline in the large
market and on other hand there would be a
leftward shift in the supply curve which
tends to slow-down the overall supply of
goods in the market.

CONCLUSION
In this presentation, it is derived that the demand and supply of the
product work parallel to each other. Demand and supply are the two
major elements of microeconomics, which is ensures the effective
flow of goods and services in the target market.

REFERENCES
Online:
Trampoline prices 'to soar 50% on shipping costs', 2021 [Online] Available through
<https://www.bbc.com/news/business-55702243>
Books and Journals
• Anderson, D.A., 2022. Triangulated teaching: approaching environmental
economics from multiple angles. In Teaching Environmental and Natural
Resource Economics. Edward Elgar Publishing.
• McEvoy, D., 2022. Positive economics, economic efficiency, environmental
economics and policy. In Teaching Environmental and Natural Resource
Economics. Edward Elgar