Economic Analysis: Trampoline Profit Issues and Market Dynamics

This report analyzes the factors affecting Trampoline's profit, focusing on the impact of rising shipping costs and international price increases. It applies microeconomic concepts such as the law of demand, factors influencing demand (price, income, related goods, tastes), and elasticity of demand to understand consumer behavior. The report also examines supply-side factors, including the law of supply, production costs, and government subsidies, and how changes in these factors shift the supply curve. The conclusion highlights that increased costs negatively affect supply and profitability, emphasizing the importance of demand and supply dynamics and elasticity in the global market. Desklib provides access to similar assignments and study tools for students.

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
Business environment is basically the sum of all the
factors which are not in the control of the management and
affect the different operations of the business in both positive
and negative manner.

Trampoline's profit Issues
According to the news of BBC, the prices of shipping
is arises day by day due to which the prices of
trampoline at the international level has been
increased and one of the sports organisation fames
this. One of the owner of outdoor toys says that the
prices of the toys are increases because of increase as
well as variations in the cost of transportation and port
congestion.

Concept of Micro economics
Due to the large size or frame of the Trampoline cost
of toy is increased and this result in that the respective
product are not purchased by the customers.

Law of demand
Law of Demand, state that the higher the price of the good
the lower the quantity demanded in the market(Rand, 2018).
There are various types of factors that have same sections in
the marketplace and also have some particular approaches.

Factors affecting demand
 Price of the commodity
 Income of the consumer
 Price of related goods
 Taste an preferences of the customers

Elasticity in Demand
This is also known as demand elasticity which state
that how the demand of the goods and services is
compared to change in relation to other economic
factors like income or price.

Supply
Supply may be define as the ability of a
procedure to produce the goods and services in order to
take them into the market.

Law of supply
The law of supply is basically a micro economic law which
state that if the price of the good and services increases then
the supply of the particular good is also increase and vice
versa as all the factor will remain constant (Buechner, 2018) .

Factors affecting supply
 Costs of production
 Government Subsidies

Change in Supply Curve
This is related to the shift of the supply curve because of
the change in the various factors such as cost of
manufacturing the good, change in technology and many
more(Dean and et. al., 2020).