An Analysis of Demand and Supply in the Trampoline Business Sector

This report provides an analysis of the demand and supply dynamics within the trampoline business environment, focusing on the impact of economic factors such as shipping costs, consumer income, and market prices. It examines how soaring shipping costs affect the price and demand for trampolines, particularly in the UK market. The report discusses key concepts of demand and supply, including the factors that influence them, such as commodity prices, consumer income, related goods prices, and consumer preferences. Furthermore, it delves into the elasticities of demand and supply, explaining how shifts in these curves are caused by changes in income, prices, technology, and production costs. The conclusion emphasizes the significant impact of price changes on both demand and supply, leading to potential losses for toy retailers due to increased shipping and carriage costs. The report references academic sources to support its analysis of the vulnerability of businesses to changes in the economic environment.

Business Environment

Table of contents
• Introduction
• Trampoline's profit Issues
• Concept of Demand
• Factors Affecting Demand
• Demand Elasticity
• Concept of Supply
• Factors Affecting Supply
• Supply Elasticity
• Conclusion
• References

Introduction
Business environment includes the all the
operation which are operating in the
economy in order to analyse the growth of
the business. Economics is defined as the
branch of knowledge related to the
production, consumption and transfer of
wealth. The conditions of the particular
region come under the study of economics.

Trampoline's profit Issues
• As per the BBC news, there are soaring shipping
costs which cause a bounce in the cost of
trampolines in UK as per one of the game retailer.
James Owen is the owner of Outdoor Toys says that
there is adverse change in the high transport costs
and port congestion may high for larger toys which
includes climbing frames, trampolines will be more
expensive so that general people can not afford
them and toy retailer is facing huge changing in
their profitability.

Concept of Demand
Demand is defined as the desire of
the individual to buy the particular
goods and also having the
willingness to pay for the same other
factors remain constant, an increase
in the price of good or services will
decrease the overall demand in the
market and vice-versa.

Factors Affecting Demand
• Price of the commodity:
• Income of the consumer:
• Price of related goods:
• Taste and preferences of the
customers:
• Customer expectations

Demand Elasticity
It is also known as change in demand
curve which defines the movement in
the entire curve which is causing to the
various factors which includes change
in income, change in the price of
goods, taste and preferences of the
buyers. In these cases, the demand
curve will shift to right or left.

Concept of Supply
Supply is defined as the total amount
which is available for the specific goods
and services for the further sale in the
market so that an organsiation can
increases their overall sale and
profitability. In context to Trampoline,
toy retailing company can charge high
prices to the buyers but they are facing
huge carrier and shipment cost.

Factors Affecting Supply
 Costs of production:
 Government Subsidies:
 Technology:
 More firms:
 Objectives of firms:

Supply Elasticity
It is defined as the shift in the
supply curve due to change in the
certain factors such as tax rate,
technology or the production cost
of the company. When the supply
of the goods increases then supply
curve shift to S0 to S1. On other
side, when the supply of the
goods decreases then the curve
shift from S0 to s2.

Conclusion
It is concluded from the above report that there is major impact of demand and
supply due to change in the price of the trampoline and the company that are
dealing in Toy retailing facing huge looses due to sour prices of shipping and
carriage cost of trampoline. There are various factors which is impacting the
demand such as price of the commodity, income of the consumer, taste and
preferences of them.

References
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Chakraborty, D. and et.al., 2019. Demand drivers for charging infrastructure-
charging behavior of plug-in electric vehicle commuters. Transportation
Research Part D: Transport and Environment. 76. pp.255-272.
Filote, C. and et.al., 2020. Environmental impact assessment of green energy
systems for power supply of electric vehicle charging station. International
Journal of Energy Research. 44(13). pp.10471-10494.
Hymel, K., 2019. If you build it, they will drive: Measuring induced demand for
vehicle travel in urban areas. Transport policy. 76. pp.57-66