Examining Trampoline's Profit Issues: A Microeconomic Perspective

This report examines the microeconomic factors affecting Trampoline's profitability, focusing on issues arising from soaring shipping costs and port congestion. It delves into core microeconomic concepts such as demand, supply, and elasticity, illustrating how changes in price impact demand and supply curves. The report analyzes the inverse relationship between price and demand, showing how increased prices can decrease demand for trampolines. It further explores the elasticity of demand and supply, explaining how various factors like income levels, substitute availability, production costs, and government subsidies can shift these curves. The conclusion emphasizes that rising trampoline prices affect market supply, underscoring the interplay between supply, demand, and elasticity in shaping business outcomes. Desklib provides this report and many other solved assignments to aid students in their studies.

Business Environment

Table of content
• Introduction
• Trampoline's profit Issues
• Microeconomics
• Concepts in Microeconomics
• Elasticity of Demand
• SUPPLY
• Elasticity of supply\
• CONCLUSION
• References

INTRODUCTION
• Economics is being defined as a study of economic resources and its use in many situations. There
are various issues for business which prevails in market and can not be ignored. Every business has
to face various challenges in its working.
• The business environment is affected through these factors which includes government, customers,
suppliers and competitors
• The presentation examines factors like supply and demand which is most essential wheels of
economics.

Trampoline's profit Issues
• The article has been founded on BBC News related to increasing of actual prise of larger toys
because of soaring shipping cost and port congestion.
• This is being known by one of the owners of companies which deals in trampoline.
• The owner of outdoor toys whose name is Owen said that there is huge changes in price of large
toys which including trampoline.
• He also said that congestion port will be huge for the large size toys.

MICROECONOMICS
• This have to be defined as an study of the
tendencies when an individual make some
choices as response of changes in factors such
as incentives, prices, resources and methods
of production.

Concepts in Microeconomics
• Demand
• Law of demand

Continue
• In the given diagram, this is shown that when price increase from p2 to p3 then the goods demand
fall down from q2 to q1. As there is inverse relation within demand and price of the product.

Elasticity of Demand
• This have been defined as change in demand because of change in other related factors which
affects demand of such income, price level or any substitute available.
• The curve of demand will shifts from left to right in relation to decrease or increase in demand of
trampoline in a targeted market(Hartley, 2020).

Continue
• After analysing diagram mentioned above,
this is being analysed that the curve of
demand shift to the left or right because of
decrease and increase in the given prices of
trampoline in the given market.

SUPPLY
• Supply is defined as an aspect of fundamental
which defines total available amount for
services and product for the buyers.
• This is mainly related to actual available
amount which is being available in future sale
in given price which will ensure the huge
profitability in the business.

Elasticity of supply
• This have to be defined as an shift in the curve
of supply because of change in many factors
like cost of products, subsidies of government
and many more(Tzeremes, 2022).
• When factors are favourable, then supply of
commodity and services in the market
increases and vice versa.

CONCLUSION
• In the above report, this is being concluded that increase in prices of trampoline are affecting the
supply in market place.
• The report discusses two main factors which are supply and demand and elasticity of demand and
supply.