Analyzing Microeconomic Concepts: Demand, Supply, & Market Structure

This essay delves into the application of microeconomic concepts, specifically focusing on demand and supply theory and market structure, to analyze business environments. It discusses how factors like customer behavior, employee availability, competition, investor interest, and media influence impact businesses. The essay uses the example of a price rise in trampolines to illustrate the interplay between demand and supply. It further explains different market structures, including perfect competition, monopoly, monopolistic competition, and oligopoly, and concludes by highlighting the importance of economic models in understanding and predicting economic behavior. The essay references academic sources to support its analysis of economic trends and market dynamics. Desklib provides students access to similar essays and study resources.

Economic concepts and
models

Table of content
 INTRODUCTION
 MAIN BODY
 Discussing main arguments related to article by taking use of micro economic
concepts.
 Explaining the theory of demand & supply and market structure
 CONCLUSION
 References

INTRODUCTION
The concept of business environment refer to sum total of all factors
which are external to business organisation and influences their
functioning. This comprises of the factors such as customers, suppliers,
government etc. There is identification of business opportunities with the
help of business environment along with this assist in planning,
improving overall performance, growth and profitability of business. The
useful resources are tapped with careful scanning of business
environment which helps the firm in tracking resources and convert them
into goods and services.

Describing main arguments relating to the
article by using the micro economic concepts.
In below following factors has been discussed-
 Impact of customers- The customers are most important part of an organisation which
helps business to earn profitability. The customer find difficulty bin brand selection or
same product which they are currently purchasing when there is rise in product prices.
 Availability of employees-The working of employee benefits the organisation in smooth
functioning with its full efficiency and effectiveness.

Continue…
 Level of competition- The market share and organisation function is affected directly with the market
and competition level. The large number of customer signifies the product demand which is on high
scale.
 Availability of investors- In the aim of receiving dividend shareholders and investor invest funds in
company. The margins of business concern will decline with the increase in price of final product in
short time period and affects origination operating results.
 Media and general public- It helps in generating brand awareness and image as they work as face of
company product in terms of purchase and consumption

Explaining the theory of demand & supply and market
structure.
From the above given article it is been shown effect of price rise in trampoline which can be interpret
by having study of several microeconomic concepts.
Demand and Supply- In economics terms demand refers to quantity of good that consumer is willing
and wants to purchase at several prices during a given time period the relationship is shown between the price
and willingness of people for purchase or exchange. There are various factors which influences demand for
given goods-
 Price of commodity
 Consumer Income

Continue…
Supply, refers to amount of resources which producer, provider of
financial assets are willing and able to offer in market place or to an individual.
Supply is total amount of specific good which is made available to resources.
The various factors affecting supply for particular products -
 Cost of production
 Government subsidies

Market structure
It refers to nature and characteristics of the market which can be organizational or having competition
in it. The pricing policies that are move in the market and quality of competition are described.
 Perfect competition
 Monopoly market
 Monopolistic competition
 Oligopolistic market

CONCLUSION
From the above it can be concluded that, economic model allows in observing,
understanding and predictions are made about economic behaviour. The study of microeconomic
and macroeconomics concepts help in acknowledging economic trends and various factors. There
was major impact in fluctuation of demand and supply due to change in price. The study of
different market structure assists in knowing numerous segments of service and production. There
was increase in inflation rate, availability of labour at high rates and production activities in
economy was dropped.

REFERENCES
 Kochan, and et.al., 2018. Impact of cloud-based information sharing on hospital supply
chain performance: A system dynamics framework. International Journal of Production
Economics. 195. pp.168-185.
 Misra, and et.al., 2021. Integration of Supply and Demand Side Management Using
Renewable Power Sources: Application on an Air Separation Plant. Industrial &
Engineering Chemistry Research.60(9).pp.3670-3686.
 Shadrina, E., 2018. The Common Gas Market of the Eurasian Economic Union: Progress
and Prospects for Institutionalization. Region.7(1). pp.105-138.
 Tian, H., 2018. Role of capital market to accelerate the transition to low-carbon energy
system. In Financing for low-carbon energy transition (pp. 211-238). Springer,
Singapore.

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