Economic Analysis of Trampoline Price Increase - BMP4003 Module

This presentation analyzes the surge in trampoline prices as reported by BBC News, attributing it to increased shipping costs and port congestion, impacting the supply chain. It delves into microeconomic concepts such as market structure and elasticity to explain the dynamics at play. The presentation covers perfect competition, monopolistic markets, oligopolies, and monopolies, further explaining elasticity of demand and supply. The analysis concludes that transportation costs significantly affect market demand and supply, impacting overall market equilibrium. Desklib provides access to similar presentations and study resources for students.

Business Environment

Table of Content
Introduction
Trampoline profit issue
Concept of micro economics
Market structure
Elasticity
Conclusion
References

INTRODUCTION
Economics is the study of the scarcity and the
implications of the available resources,
manufacturing of goods and services, their growth
and welfare over a time. There are great variety of
complex issues are emerging which are having the
main consideration in the marketplace. Demand and
supply are the two wheels of economics which drive
the whole market and ensures the flow of goods and
services in the target marketplace.

Trampoline’s profit issue
According to the BBC News, this is based on increasing
shipping cost & port congestions within the United Kingdom.
One of the game retailer whose name is James Owen, operating
its business with out of the toy retailer company, Outdoor Toys,
increasing prices of the trampoline is hurdle the overall market
of the trampoline due to rise in the shipping cost which is rises
by 40-50% on the big size toys that are trampoline and
climbing frames so this reducing the overall supply of
trampoline in the market.

Concept in Microeconomics
It is the study that what is likely to happen as
the individuals make the choice in context to
the change in incentives, resources, prices and
the certain methods of productions. It also
incudes the buyer, sellers and owner of the
business.

Market Structure
It is the part of the microeconomics and define
the various market structure and these market
structure is based in the certain number of
seller and buyer, type of goods, exist and the
entry in the large market so that they can
sustain in the competitive market with the
nature of goods and services and the economic
scale in the target market. Following are the
certain market structure that are illustrated
below:

Market Structure
 Perfect competition
 Monopolistic market
 Oligopoly market
 Monopoly market

Elasticity
It is the part of microeconomics which
explains the change in the demand and
supply of commodities and services.
Basically there are two parts of elasticity
which are illustrate below:

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 Elasticity of demand
 Elasticity of supply

Conclusion
From the above presentation, it is being summarised that the souring price of trampoline's
transportation that will impact the overall fluctuation in the demand and supply in the market.
There are various types of market structure that are perfect competition, monopolistic,
oligopoly and monopoly market.

References
 Cariou, P. and Guillotreau, P., 2022. Capacity management by global shipping
alliances: Findings from a game experiment. Maritime Economics &
Logistics. 24(1). pp.41-66.
 Junaid, M., Zhang, Q. and Syed, M.W., 2022. Effects of sustainable supply
chain integration on green innovation and firm performance. Sustainable
Production and Consumption, 30, pp.145-157.
 Lu, J. and Li, H., 2022. Can high-speed rail improve enterprise capacity
utilization? A perspective of supply side and demand side. Transport
Policy. 115. pp.152-163.