Microeconomic Concepts: Trampoline Market Analysis Post-Brexit

This report examines the impact of increasing trampoline prices due to rising shipping costs and Brexit-related trade restrictions on the business environment. It explores microeconomic concepts such as pricing theory, utility theory, demand and supply, and cost and production theory, highlighting how these factors influence the trampoline market. The analysis reveals that high demand during summers coupled with Brexit-induced shipping costs has led to increased prices and decreased demand for trampolines. The report concludes that the cost of a product depends on market demand and supply, with production costs and external factors like Brexit significantly affecting pricing and consumption patterns. Desklib offers similar solved assignments and past papers for students.

Business Environment

INTRODUCTION
 As due to the increasing pricing of trampolines which had sored 50% on the
shipping costs has impacted the economy of the country and this has impacted
Brexit as this has termed a long term consequence in the shipping industry and
has raised the shipping cost of the transportation as due to restriction of the
trade-in Eu countries has impacted on the pricing and transportation of the
products and this has made a huge difference in before and after pricing
methods. This presentation is about various microeconomic concepts and various
theories. The analysation of these points is described below.

Microeconomics and its uses
 Microeconomics is known as the social science and this is known as the studies which
implement all the decisions and incentives which affects the distribution and utilization of the
available resources this also shows the different value of similar product in the market and it
also implements show the business and the individual sounds various benefits from exchanging
and producing of the products for cooperating and coordinating with others(Lin 2020). This is
a way by which an individual responds to the external changes in the pricing, incentive,
production of method and various resources. In this everything is grouped as a subgroup which
involves business owners, buyers and sellers and these subgroups also create demand and
supply of various resources by using the interest rates and money for maintaining the
coordination of pricing. As this is applied by each country as this describes and explains the
economic behaviours as this is considered important to analyse in the market for better
sustainability.

Concepts of microeconomics
 Pricing theory
 As Trampolines id demand is high in the summers and is considered as a most loving game
of children in summers as due to Brexit the trade has banned in Eu and this has somehow
impacted the whole world as for the outdoor toys the cost of porting and transportation has
increased which made the trampolines ride cost expensive and it can ever soar by 50%. As
the rates of this will get high and because of the rising shipping cost as this factor is
impacting the economy and for the first time, the cost of the trampoline is rising at this
level(Lyu 2021).

Utility theory
 As due to the high demand in children of the Trampolines is giving them the
utility in return of expanding a huge amount which is now increased due to
Brexit and the prices went high due to the high transportation and shipping cost
of the product and thus making them less satisfied due to the increased cost
decreasing the demand of trampolines and children is switching their source of
play and as the consumers who are only desired of utility is ready to expand the
high cost for gaining the utility but as they will also pay once or twice as the
marginal utility decrease by consuming of using the product of service again(Lin
Xiao and Li 2020).

Demand and supply
 As the Trampoline has a high demand during summers which is diminishing the
supply and resulting in high pricing but the pricing is getting more high due to
Brexit as this had resulted in high shipping and transportation cost which has
increased the cost of the trampoline by 40 to 50% and because of this the
demand of the product is decreasing in the market due to its high cost as pricing
has become more expensive and many people can not afford a huge amount in
Trampoline, therefore, the demand of the outdoor toy is decreasing In UK
because of the high pricing(Sage and Matteucci 2022).

Cost and production theory
 As this production function is for a specific period Trampoline cost is has
increased due to its production as it is transferred from country to country and it
is increased due to the high transportation and shipping cost which has increased
the pricing of the ride as it demand Is high in summers and due to Brexit and the
increment of shipping the has reduced the demand in the industry as it is
assuming to find a new method of the supplier to save the cost of transportation
and save reduce the overall cost of the same and this is assumed that this cost is
fixed for some time because if the technology and industry-government
changes(Lu and Zhou 2021).

CONCLUSION
 This report has concluded that the cost of any product is dependent upon the
demand of the product in the market and is supplied at the same cost. This report
has also concluded that many concepts can determine the cost and consumption
of the product and each product is interlinked with its supply and demand. This
report also concluded that the cost of the product is also dependent based on
production cost which involves fixed and variable factors that affect the cost and
pricing of the product.

REFERENCES
 Lin, N., 2020. When Permian Goes Global How to leverage USA LNG in a changing global market?.
 Krozer, Y., 2022. Changing Energy in Economies. In Economics of Renewable Energy (pp. 53-81).
Springer, Cham.
 Lyu, Y., 2021. Accounting for the declining economic effects of oil price shocks. Energy Economics, 96,
p.105015.
 Palmer, K., Paul, A. and Keyes, A., 2018. Changing baselines, shifting margins: How predicted impacts
of pricing carbon in the electricity sector have evolved over time. Energy Economics, 73, pp.371-379.
 Lin, Y., Xiao, Y. and Li, F., 2020. Forecasting crude oil price volatility via a HM-EGARCH model. Energy
Economics, 87, p.104693.