Demand, Supply, and Elasticity: Impact on Trampoline Business Profits

This report delves into the business environment surrounding trampoline businesses, specifically addressing profit issues highlighted in a BBC news article concerning rising shipping and congestion costs. It applies microeconomic principles, focusing on demand, supply, and elasticity to analyze the factors influencing the trampoline market. The report explains the law of demand, noting the inverse relationship between price and demand, and the law of supply, which describes the positive relationship between price and supply. Elasticity of demand and supply are also discussed in relation to factors like consumer income, substitute availability, and production costs. The conclusion emphasizes that increased trampoline prices lead to decreased supply, highlighting the importance of understanding demand and supply dynamics for businesses in this sector. Desklib provides similar solved assignments for students.

Business Environment

TABLE OF CONTENTS
• INTRODUCTION
• Trampoline's Profit Issues
• Microeconomics
• Law of Demand
• Elasticity of Demand
• Supply
• Elasticity of the supply
• CONCLUSION
• REFERENCES

INTRODUCTION
Business environment is defines as the sum of all the
internal and external factors and the forces that are not
within the control of the organisation but its impact on
the working of the organisation and its production.
Theses factors includes the employees of the
organisation, customers needs and the expectations
from the particular organisation,

Trampoline's Profit Issues
Its been found in the article of the BBC news which is
related to increasing the total cost of the big toys because
of rising the shipping cost and the cost of congestion. Its
being analyse by the one of the trampoline company
owner. The owner of the outdoor toys company evaluates
that there has been huge changes in the prices of the
larger toys which consists trampoline also.

MICROECONOMICS
It is being describes as the factors and the tendencies
where individual make choices in respect to the changes in
the elements that are prices, incentives, resources and the
methods of production. It is basically implement in the
market of goods and services and deals with issues related
to the individual and economic.

DEMAND
Demand is the major important element in the
microeconomics which affects by the want of the
individual in purchasing any specific goods and
services which is connected with the enough
purchasing power of the consumer. It is related with
the change in the prices of the product in the
marketplace.

LAW OF DEMAND
It is analysed that the situation where there is inverse
relationship between the price and the demand of the goods.
And the people are having sufficient purchasing power to
purchase the particular products from the target market. When
the prices of the product and services enhances, then the
demand of that product decreases as result. When there is
decrease in the price, the demand of that goods and services
automatically increases.

ELASTICITY OF DEMAND
It refers to the change in the demand due to the
change in the related factors which make impact on
the demand. The factors includes price, income
level of the consumer or the availability of the
substitute. The demand curve will shift towards the
left or right with respect to the rise and fall in the
demand of the trampoline in the market

SUPPLY
Supply is defines as the important aspect which
defines as the total available amount of the product
and the services to the customers. This is basically
related to the amount of the product and services
which are present for the sale at the provided prices
and which ensures the higher profitability to the
organisations.

LAW OF SUPPLY
This law describes as the positive relationship among
the price and the supply of the product and services.
When the prices enhances the supply of the product
also rises as the manufacturer sells the goods on
higher prices which results in the increased profits.
Whereas when the prices decreases of the goods the
supply also falls. This law assumes that all the other
factors related to that remains constant.

ELASTICITY OF SUPPLY
It is defines as the shift in the supply curve
because of the change in the multiple factors such
as cost of the production, subsidies by the
government and many more. When each and
every factors are favourable, then the supply rises
and vice-versa.

CONCLUSION
From the above report it is being concluded that the
increment in the price of the trampoline results in the
decreasing in its supply or affecting its supply in the
market. This report highlights the two major essential
and important factors that are demand and supply and
the elasticity of the demand and supply.