Exploring Demand, Supply, and Market Structures in Microeconomics

This essay provides an analysis of economic concepts and models, focusing on demand and supply, and market structure. It discusses the impact of rising trampoline prices, referencing an article highlighting increased shipping costs and their effect on customer behavior, distribution channels, and competition. The essay explains the theory of demand and supply, detailing factors that influence both, such as commodity prices, consumer income, and production costs. It also explores different market structures, including perfect competition, monopoly, monopolistic competition, and oligopoly. The conclusion emphasizes the importance of microeconomic concepts in understanding economic trends and market dynamics, noting the impact of pricing changes on supply and demand.

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 term business environment is related to sum total of
numerous factor that impacts on business functionality in target
market. In the market economics is related to study of demand
and supply, elasticity and several market structure which have
contribution in enhancing economy. The importance of
economics helps in determining prices and stability. The
presentation covers issues to sour prices of trampoline in market
(García-Martínez, and et.al., 2019). This also covers detail
concept of micro economic concepts which involves demand &
supply, elasticity of demand, different market structures.

Describing main arguments relating to the
article by using the micro economic concepts.
 Trampoline 's profit issues - According to the BBC News, the increase of shipping cost
implies the rise of prices of trampoline as it is known for game retailer in operating
market.
 Impact of customers- For an organisation the customers are considered as backbone
which supports in major revenue of organisation. The rise in prices of products makes
difficult for customers to select same brand that they purchase currently.
 Availability of customers- In the company funds are invested by shareholders and
investors in the exchange of receiving dividend. In the short period of time the margins of
business will start declining with the increase in price of final product and affects
business operating results.

Continue…
 Distribution channels and suppliers- In positioning of goods distribution channel has
an important role. The goods are sourced from several channels and distributed to same
customer is an chain which is followed by an organisation to build an strong network.
 Level of competition- In the organisation competition level and market affects directly to
market share and functioning of organisation. The product demand is on high scale with
large number of customers.
 Availability of employees- When working of workforce is for benefiting an enterprise
then business will drive smoothly that role and functions are performed with full
efficiency and effectiveness

Explaining the theory of demand & supply and
market structure.
 From the above article it is shown effect of rise in prices in trampoline which can be
understood by studying main concepts of microeconomic concepts
Demand and supply- It defines to needs of consumer for specific commodity. In
the terms of economics there is difference among demand and quantity demanded. The
quantity demanded is an actual quantity at particular place and time. Following are the
factors influencing demand for the given goods-
 Price of commodity-
 Income of consumer

Continue…
Supply defines to total production completed by
manufacture for consumers and availability of goods for the
consumers. In the law of supply there exist and positive
relationship among price and quantity supply for given goods.
Following are the factors affecting supply of specific goods-
 Cost of production
 Government subsidies

Market structure
This defines to structure of market on basis of degree of competition, number of buyers
and sellers, pricing strategies, exit and entry of several buyers. The market is being
divided into four major markets-
 Perfect competition
 Monopoly market
 Monopolistic competition
 Oligopolistic market

CONCLUSION
It is being concluded that the concepts of microeconomic helps in studying trends
of economy and several factors of microeconomics. The major impact was due to change in
prices in context to microeconomic through demand and supply of specific market also
fluctuates. The studying of different market structure helps in knowing several segments of
service and production. The sourcing pricing of trampoline impacts overall supply in
market.

REFERENCES
 García-Martínez, and et.al., 2019. Microeconomic education, strategic incentives, and
gender: An oligopoly classroom experiment with social interaction. International
Review of Economics Education, 30, p.100148.
 Jankovic, I., 2020. Mengerian Microeconomics: The Forgotten Anglo-American
Contribution to the Austrian School. Palgrave Macmillan.
 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.
 Tippit, R., 2020. 2 Becker’s two models of social interaction. In How Social Forces
Impact the Economy (pp. 17-39). Routledge.