Demand, Supply, and Microeconomics: A Trampoline Business Analysis

This essay examines the economic factors influencing the profitability of a trampoline business. It delves into microeconomic concepts such as the law of demand, factors affecting demand (price, income, related commodities, taste), elasticity of demand, supply, the law of supply, and factors affecting supply (production costs, technology, subsidies). The analysis highlights how rising shipping costs impact trampoline prices and overall market supply. The essay concludes by emphasizing the interplay of demand, supply, and elasticity in shaping the market dynamics for trampolines, referencing a BBC News article and academic sources.

ECONOMIC CONCEPT AND MODELS

TABLE OF CONTENTS
• Introduction
• Trampoline's profit Issues
• Concept of microeconomics
• Law of Demand
• Factors affecting demand
• Elasticity in demand
• Supply
• Law of Supply
• Factors affecting supply
• Change in supply curve
• Conclusion
• References

INTRODUCTION
Business is referred to the separate
legal entity which are engage in
production, manufacturing and goods
and services so that they can rendered
to the potential customer in order to
generate more profits.

TRAMPOLINE'S PROFIT
ISSUES
As per the BBC News, the increasing
shipping price is rising in the respective cost
of Trampoline and this being stated that by
one of the toy retailer operating in the
marketplace. Owen is the owner of outdoor
toy and according to him, there is the major
change in the transportation price and port
congestion are higher for the large toy and it
is being specific in the.

CONCEPT OF MICRO ECONOMICS
There is various concept in
microeconomics who are operating
certain functions with the aim
systematic fulfilment of demand and
supply in the concern places. Demand is
defined as the choice of the people so
that they buy the particular commodities
and also having the capacity to buy such
products.

LAW OF DEMAND
Law of demand , According to this, change
the prices of commodities rises tends to fall
down the respective demand of the
particular products as it shows the inverse
relationship in the prices at which the
people are buying and the quantity
demanded for particular commodities.

FACTORS AFFECTING DEMAND
Following are the factors which influence the demand of the given goods
are illustrate below:
• Price of the products & services
• Income of the buyer
• Price of related commodities
• Taste & choices of the buyer

ELASTICITY IN DEMAND
• It is referred as the change in the
overall curve can be to the change to
the curve due to variation in the
various factors. This is being vary in
the various aspects that involve
variation in the income, prices, taste
& preference of the buyer.

SUPPLY
Supply is defined as the total available
quantity of certain products & services to
their potential buyers. This is also connected
to the products and services are being
available at the given prices so that they can
ensures the higher profitability in the target
market.

LAW OF SUPPLY
According to this, It has the direct
relationship between the cost of
product & the quantity supply of
the given commodity. When the
given prices of products increases
then the quantity supply in the
target market also rises because all
the suppliers are working for
generating more profits.

FACTORS AFFECTING SUPPLY
Factors which are affecting supply of the particular
commodity are illustrate below:
• Production Costs
• Innovative Technology
• Subsidies offered by government

CHANGE IN SUPPLY CURVE
It is referred as the significant shift in
the curve because of change in the
certain aspects that includes cost of
production, subsidies offered by
government, objectives and technology
of the companies. Increase in the
supply of particular goods tends to
increase the overall supply of
commodity offered by the firms.