Economic Concepts: Analyzing Demand, Supply & Trampoline's Profit

This report examines the economic factors influencing the trampoline market, focusing on demand, supply, and elasticity. It addresses the impact of rising shipping costs and port congestion on trampoline prices, as highlighted in a BBC news article. The report defines microeconomics and explores the law of demand, identifying factors affecting demand such as price, consumer income, and preferences. It also discusses elasticity of demand and how shifts in the demand curve reflect changes in market demand. Furthermore, the report covers the law of supply, factors affecting supply (including production costs, technology, and government subsidies), and changes in the supply curve. The conclusion emphasizes the impact of rising trampoline prices on market supply, summarizing the key concepts of demand, supply, and elasticity discussed throughout the analysis.

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 may be defined as the process of
studying the economic resources along with their
usage in the different types of situations. Different
types of issues are faced by the management of the
business organisation while operating the market,
which can't be ignored (Astapenko, 2018). There
are different types of factors like competitors ,
suppliers, customers, government and many more
which a huge impact on the environment of the
business.

TRAMPOLINE'S PROFIT
ISSUES
On BBC news an article has been identified, which is totally
related to increase in the cost of the big toys because of soaring
of shipping cost and port congestion. This is being identified by
one of the company owner of Trampoline. Owen, who is the
owner of outdoor toys says that a major modification has been
seen in the prices of the big toys which comprises of trampoline
(Brauer and Anderton, 2020). It has been identified by them that
port congestion will be more for those toys which are of big in
size.

CONCEPT OF MICRO ECONOMICS
This may be referred as the study of tendencies, when an
individual make different types of choices in relation to
the change in the aspects such as price, incentive,
resource and production method. In the market of good
and services these can be applied along with this, this
deals with the individuals as well as the different types of
economic issues.

LAW OF DEMAND
This may be defined as a situation where inverse relationship
has been seen in the prices and the demand of particular goods
and services while paying focus on the buying power capacity
of the individual for a specific product in the target market. If
the prices of goods and services has been increases then this
result in decrease in demand of that particular good and if the
price declines, the demand of the product rises up.

FACTORS AFFECTING DEMAND
the elements which impact the demand of the particular
commodity which are given below: -
• Price of the commodity
• Income of consumer
• Preferences of buyer

ELASTICITY IN DEMAND
This may be defined as the change in the product
demand due change in the prices factors other and other
factors remain the same (Saviotti and Metcalfe, 2018).
If the demand curve shifted form left to right then this
shows the increase in the demand of the Trampoline in
the specific market on the other hand if the shifts from
right to left then this result in decrease in demand.
There are different types of factors like income,
preferences and many more which affect the demand of
trampoline in the market.

SUPPLY
This may be defined as the availability of the goods
and services of a specific product to the consumer in
the target market. This is basically related to the
amount of gods available to sale in the market at a
given price in order to make sure the higher
profitability of the firm

LAW OF SUPPLY
The law of supply states that there is a positive
relationship between the prices of the particular
good and the demand of the commodity in the
market (Thampapillai and Ruth, 2019). If the price
of the goods increase the supply also increase and
vice-versa. This may result in increase in the
profits. It has been that all the other factors remains
the same.

FACTORS AFFECTING SUPPLY
Factors affecting supply of the specific good are as
follows:
• Costs of production
• Technology
• Government subsdies

CHANGE IN SUPPLY CURVE
This can be referred to as the shift in curve of
supply because of change in many factors such as
government subsidies, cost of the production and
many others. When these factors are favourable for
business, it will increase the supply of the services
and goods and vice versa.