Microeconomics Presentation: Business Environment and Elasticity

This presentation delves into microeconomic principles, focusing on the application of supply and demand within a business context, specifically using the trampoline industry as an example. It explores the factors influencing demand, such as consumer income and the price of related products, and the factors influencing supply, including technology and the efficiency of workers. The presentation also covers the concept of elasticity, examining how changes in price affect the quantity demanded and supplied. It provides a comprehensive analysis of microeconomic concepts, offering insights into consumer behaviour and the dynamics of market forces and concludes with a discussion on how these principles can be applied to understand and analyze market trends and business challenges.

BMP4003 Business Environment
Assessment 1 - Individual Presentation

Article Review - Economic Concepts And
Models
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Contents
•Introduction
•Profit issue in Trampoline's Business
•Concepts of microeconomics
•Demand and supply
•Law of demand
•Factors responsible for demand of Trampoline
•Supply
•Law of supply
•Factors affecting supply of trampoline
•Elasticity and Elasticity of Demand & Supply
•Conclusion
•References

INTRODUCTION
The aim of this presentation is to
explore various concepts of
microeconomics which majorly
focuses on the buying behaviour
of customers towards specific
product or service.

Profit issue in Trampoline's Business
As per the article of BBC news,
the cost of transportation and
congestion prices are rising and it
affects the prices of various toys
such as swings, climbing frames
and trampoline.

Concepts of microeconomics
There are various concepts
which microeconomics
undertakes such as demand,
supply, allocation of
resources, labour, production
and equilibrium.

Demand and supply
The whole concept of
business is based on
demand and supply and is
used by every business in
order to ascertain market
demand and product supply.

Demand
It may be referred to the
quantity of consumers
who are able to and
willing to buy products
at different prices in a
particular period of
time.

Law of demand
The theory of demand and
supply demonstrates that
demand of commodity is
mainly depends on its price as if
the price of commodity
increases, there can be seen in
decline in price of product or
vice versa.

Factors responsible for demand of Trampoline
• Change in price of similar
product
• Customer income
• Forecasting of future prices

Supply
It may be referred as a
fundamental economic concept
which involves total amount of a
particular good or service which is
available to consumers. In case of
trampoline, it demonstrates how
much pieces are available for
consumers.

Law of Supply
This fundamental concept states
that higher price of commodity
will induce producer to supply
higher quantity to market.
Businesses seeks to elevate
revenue and it is needed to
produce more for consumers.