Impact of Business Environment on Trampoline Market: Supply & Demand

This report examines the business environment surrounding the trampoline market, focusing on microeconomic principles such as supply and demand, elasticity, and factors affecting these market forces. It references BBC news regarding increasing delivery prices and the overall value of trampolines, impacting sports retailers. The report details the law of demand and supply, explaining the inverse relationship between price and quantity demanded, and the direct relationship between price and quantity supplied. Factors influencing both supply and demand, such as production costs, consumer income, and government subsidies, are also explored. The analysis concludes that changes in the price of trampolines significantly affect global supply and profitability, emphasizing the importance of understanding these dynamics in the global market. This document is available on Desklib, a platform that provides all the necessary AI based study tools for students.

Business environment

Introduction
The environment of the business is the
addition of all external factors that have
directly effect on management's global
operations. The government, customers,
suppliers, and cultural variables are just a few
of the challenges. It is based on current
occurrences in the realm of economics.

Issues with trampoline
According to the BBC news,
The delivery price is increasing via that the global
value of trampoline is increasing as well as it
is converting famed by the sport
activities wholesaler. One of the outer toy owner,
Owen express that it is excessive terms of
the variations in transportation price and port
congestion that may be soaring for
the huge dimension.

Concepts in Microeconomics
Microeconomics is the concept that express
singular persons, family persons and enterprises
act in decision taking and share the resource. It is
using to implement in marketplaces of good and
service and deal with economic problems

Law of Demand
As a result, product and facility costs and
quantities are inversely proportional. In the
market, there are numerous features with similar
components, and particular terms of approaches.

There are many factors that will increase the value of trampolines, involving the
following:
• Value of the commodity
• Earning of the consumer
• The value which is directly relate from the
goods
• Taste an preferences of the customers
Taste

Elasticity in Demand
Elasticity in demand means that evaluating the
difference in the value of demand of the goods in
regards to increasing and decreasing of the
variables cost such as price, earning, etc
Moreover, its evaluate the change in demand
while changing other economic factor.

SUPPLY
Supply is a concept that describes the total amount
of a good available for the consumers by the
suppliers at a given price level .

Law of supply
Law of supply states that there is a direct
relationship between price and quantity supplied.
It evaluates that, when the price of any commodity
increase it's supply increase and when price
decrease it's supply decrease by keeping all other
factors constant .

According to the above image, it can be stated that
the supply curve is downward slope curve with the
aid of having fine dealings amongst provide and
cost of the introduced products. When the fee of
products will maximise to P3 to P2 then the
supply will additionally maximise from Q3 to Q2
that is presenting to be maximise to their fee of
trampoline in the market.

Factors affecting supply
• Production cost
• Subsidies by government
• State of technology

Change in Supply Curve
Factors that affect the supply curve are production
cost , subsidies by government and state of
technology, which leads to shift in the curve,
which cause increase in supply and and shifts to
right and it will shift from S0 to S1, while
decrease in supply leads the curve shift to left and
it will shift from S0 to S2.