Review of Economic Concepts in Trampoline Business Profitability

This report provides an overview of the economic concepts affecting a trampoline business, focusing on issues related to profitability, demand, and supply. It begins by outlining the challenges faced by trampoline businesses, including expenses related to leasing, maintenance, marketing, and labor. The report then delves into microeconomic concepts, emphasizing their importance in decision-making. The demand module explores factors influencing consumer desire, such as commodity prices, consumer income, and preferences, while also discussing the elasticity of demand. The supply module examines the factors influencing the availability of goods and services, including manufacturing costs, government aid, and technological impacts, along with the elasticity of supply. The report concludes by highlighting the interrelation between price alterations and their effects on demand and supply within the trampoline market, referencing several academic sources to support its analysis. Desklib offers a wide array of similar solved assignments and past papers for students.

Economic Concepts and
Models

Article Review - Economic Concepts
And Models
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Context
• Overview
• Issues of Trampoline's profit
• Demand module
• Factors Influencing Demand
• Elasticity of Demand
• Supply module
• Factors Influencing Supply
• Elasticity of Supply
• Conclusion
• References

Overview
Economics is primarily the social
studies which deals with
consumption, production and
distribution f the services and goods.
It primarily focus on the behavior and
interaction of the manner in which
economies work when collaborate
with the agents.

Issues of Trampoline's profit
Trampoline expenses include leasing of space,
maintenance and also its marketing and labour.
It has been seen that many toy retailers is
going through with enhanced losses. When not
control might lead to hindrance in the
operating enhanced profit and satisfaction in
the target market. In one of the report of the
BBC new article, it has been notice that there
is sudden increase in delivery price of the
trampoline (Jacque, 2022).

Concepts in Microeconomics
It is the general study which support
the firm or business in availing the
impactful decisions in prominent
manner. It its the primarily acquisition
of behaviour of individual or company
in effective manner to ensure that
improve decisions are being made.
These effective resource support the
firm in allocating resource.

Demand Module
Demand is the economic concept which
symbolise the consumer desire of
purchasing goods and services. It relates
the consumer or the customer
willingness to pay a specific price for
the particular good or services in
effective manner. Here, the effective
buying power of the service or good is
being analysed.

Factors which influence demand of goods and services
• Commodity prices
• Consumer’s income
• Taste and preferences of consumer

Elasticity Of Demand
It is the demand where the change in
quantity demanded due to alteration
in price is large. Due to change in
price demand is also alter. It
symbolise the interrelationship
between the demand alteration which
lead to alteration in firm prices.
Factors which determine the
elasticity of the product is their price
level, type of product or price and
availability of the potential
substitutes.

Supply module
Supply is the fundamental economic
concept which describe overall
magnitude of particular goods and
services which are available for
consumers. It relate the amount
available at specific price when
displayed on a graph. It is usually
determined through the market
environment.

Factors Influencing Supply
 Costs of manufacturing
 Aids rendered by Government
 Technologies impact

Elasticity of supply
The price elasticity of supply is a
measure used in economics to
demonstrate the responsiveness or
the elasticity of quantity supplied
for the good or services to alter the
price of the product. This model
represent the quantitative
relationship between supply of
commodity and its price