BMP4003 Business Environment: Economic Concepts and Market Analysis

This presentation provides a comprehensive review of microeconomic concepts, focusing on demand, supply, and elasticity. It summarizes an article discussing the impact of increased transportation costs and port congestion on toy prices, linking it to fundamental microeconomic principles. The presentation elaborates on the law of demand and supply, identifying factors influencing the demand and supply of products like trampolines. Elasticity in both demand and supply is explained, offering insights into how businesses can understand market trends. The conclusion emphasizes the importance of microeconomic concepts in understanding consumer behavior and market dynamics, providing a foundation for informed business decision-making. Desklib provides past papers and solved assignments for students.

BMP4003 Business Environment
Assessment 1 - Individual Presentation

Article Review - Economic Concepts And Models
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Table of content
 Introduction
 Summary of Given Article
 Concept of microeconomics
 Demand and supply
 Law of Demand
 Factors that influence the demand of Trampoline
 Elasticity in Demand
 Law of Supply
 Factors that influence the supply of Trampoline
 Elasticity in Supply
 Conclusion
 Reference

INTRODUCTION
 Economics refers to the social science which refers to
the understanding of in what way individuals allocate
limited resources for manufacture, delivery and
ingesting, together separately and conjointly.
 It is divided into two factors generally for
determining the behavior of each and particular
unit.

Summary of Given Article
 According to the article of BBC news, the prices of
transportation and port congestion is increase which also
increase the value of toys and games such as rubber play
chipping, rubber play bark etc.
 As per given article, the value of shipping a 40-foot
container is almost tripled since a year ago.

Concept of microeconomics
 Microeconomics is a branch of economics
that examines the characteristics of the
economic decision-makers, such as
individuals, consumers, and corporations.
 Microeconomics basically includes three
concepts such as marginal utility & demand,
elasticity of demand and elasticity of supply.

Demand and supply
 It refers the connection among the measure of a
product that manufacture want to trade at
numerous values in addition the measure which
consumer wants to purchase.
 The contact of law and supply in the market
place states the value of goods and services.

Law of Demand
 It explain that when all other aspects remain
same, the greater the value of product and
facilities then lesser individuals will
demand for same goods and services.
 There is an inverse relation between price
of a commodity and the demand of a
consumer.

Factors that influence the demand of Trampoline
 Value of product
 Taste and preference of consumers
 Availability of substitute products or brands

Elasticity in Demand
 Elasticity of demand is a crucial deviation in the
theory of demand. Elastic demand refers to the
change in the quantity demanded due to variation in
the price is high.
 The price elasticity of demand is calculated as
percentage chance in the demanded quantity divided
by the percentage change in the prices.

Law of Supply
 According to the law of supply, manufacturers
will increase their supply to the market when
the price is higher.
 In reference to article, price of trampoline is
increased due to increase in the shipping cost
and congestion.

Factors that influence the supply
of Trampoline
 Change in supply of related products
 Cost of production
 Government policies