Microeconomic Analysis: Trampoline Prices Soaring Due to Shipping

This presentation delves into the microeconomic factors influencing the soaring prices of trampolines, as highlighted in a BBC article concerning rising shipping costs. It applies microeconomic principles, focusing on concepts such as demand, supply, elasticity, and market structures, to explain the price surge. The presentation examines how factors like the cost of production, technology, and government subsidies affect the supply curve, while consumer income, tastes, and preferences impact demand. It concludes that the increased shipping costs are significantly affecting the supply of trampolines, emphasizing the interplay between demand and supply in determining market prices. Desklib offers a wide range of study resources, including solved assignments and past papers, to support students in their academic endeavors.

ECONOMIC CONCEPT AND MODELS

TABLE OF CONTENTS
• Introduction
• Trampoline's profit Issues
• Concept of microeconomics
• Law of Demand
• Factors affecting demand
• Elasticity in demand
• Supply
• Law of Supply
• Factors affecting supply
• Change in supply curve
• Conclusion
• References

INTRODUCTION
Economics is the study of scarcity and its
implication for the accessibility of
resources, production of commodities and
the welfare over time. It studies the how
the individuals, businesses, government
and the nation are making choice related
to the resource allocation.

TRAMPOLINE'S PROFIT ISSUES
While studying the BBC News, rising shipping
cost is implying in the rise in the given prices of
Trampoline and it is being known by one of the
game retailer in the market. Owen is the toy
owner who have started there is the huge
variation in the transportation cost & port
congestion can be high for the huge size toy.

CONCEPT OF MICRO ECONOMICS
Microeconomics is the concept which
ensures the operating various functions with
the sole aim of fulfilling the supply and
demand within the market. Demand is
defined as the interest and desire of the
individual to buy the particular commodity
backed with the sufficient purchasing power.

LAW OF DEMAND
Law of demand states that there is the inverse
relationship in the prices and the quantity
demand of the particular goods fall down in the
large market, other factor remains constant.
When the given prices of goods increases then
the demand for trampolines tends to fall down
and vice-versa.

FACTORS AFFECTING DEMAND
There are certain factors which impact the
demand of the given goods are illustrated
below:
• Price of the commodity
• Income of the consumer
• Taste and preferences of the customers

ELASTICITY IN DEMAND
It is defined as the variation in the
demand curve to the right or left due to
the change in the certain factors. It is
being change in the certain factors which
includes the change in the taste and
preferences, income of the consumer.

SUPPLY
Supply refereed to the available amount of goods
and services for the sale at the given prices so that
an organisation can generate higher profits and
revenue.

LAW OF SUPPLY
Law of supply: As per this law, there is
the positive relationship in the prices
and the quantity supply of goods. When
the given prices of goods tends to rise
then the supply of the given goods also
increases as the supplier will sale more
in the large market.

FACTORS AFFECTING SUPPLY
Factors affecting supply of the specific good
are as follows:
• Costs of production
• Technology
• Government Subsidies

CHANGE IN SUPPLY CURVE
This is defined as the change in the supply
curve due to the shift to the right or left of
the supply due due to change in the various
factors which are cost of production,
technology, government subsidies etc.