Trampoline Market: Demand, Supply, and Profitability Analysis

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Added on  2023/06/12

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This report examines the business environment influencing the trampoline market, focusing on the microeconomic principles of supply, demand, and profitability. It addresses the rising transportation costs impacting global trampoline prices and analyzes how factors like commodity prices, consumer income, and market elasticity affect both supply and demand. The report also discusses the laws of supply and demand, highlighting the inverse relationship between cost and quantity demanded, as well as the positive relationship between offered cost and the amount of goods available. Shifts in the supply curve due to changes in production costs, government subsidies, and technology are also considered. The analysis concludes that increasing trampoline costs will impact global supply and profitability, emphasizing the importance of understanding demand and supply dynamics in the global market.
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Business environment
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Introduction
The business environment is the sum of all the
components that are external to management
organisations and have an impact on
management's global operations. There are a
variety of challengers, including the
government, customers, suppliers, and
cultural factors.
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Trampoline's profit Issues
According to BBC news, transportation costs are
rising, causing the global price of trampolines to
rise, and one of the sports wholesalers is getting
famous for it. According to Owen, an outdoor toy
owner, there are significant disparities in
transportation costs and port congestion, which
may be increasing for larger toys and such as
frames and trampolines, which are becoming more
expensive for those who are unable to afford them
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Concepts in Microeconomics
The requirement for a person to acquire items and
services is defined as having enough purchasing
power to buy specific commodities and other
components that remain constant. Because the
costs and quantity demand of products and
facilities are inversely related, the period of cost
that is present the items that maximise the needs of
presented products will be low, or vice versa.
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Law of Demand
As a result, the costs and quantity of products and
facilities have an inverse relationship. There are
several aspects in the market that have similar
portions, as well as specific terms of methods.
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There are various factors that will influence the demand for trampolines, including the
following:
Price of the commodity
Income of the consumer
Price of related goods
Taste an preferences of the customers
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Elasticity in Demand
It's also known as demand curve variations, which
refers to a movement in the global demand curve
to the right or left, depending on specific
circumstances such as income, product costs, and
buyer preferences.
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SUPPLY
The primary aspect that analyses the entire
available number for a certain commodity to its
purchaser is referred to as supply. It is also linked
to the number at the given price by which they can
ensure great proficiency in the market.
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Law of supply
It determines that there is a positive relationship
between the offered cost and the amount of goods
available. Assuming that all other factors remain
constant, when the cost of specific commodities
reaches its maximum.
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According to the above graphic, the supply curve
has a decreasing slope due to positive interactions
between supply and cost of the offered products.
When product costs rise from P3 to P2, supply
rises from Q3 to Q2, resulting in a rise in
trampoline prices in the marketplace.
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Factors affecting supply
Costs of production
Government Subsidies
Technology
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Change in Supply Curve
The shift in the supply curve is defined as
differences in numerous aspects such as cost of
production, government subsidies, technology, and
company goals. When the supply of trampolines
reaches its maximum, the supply curve shifts from
S0 to S1, and the supply of products decreases,
shifting from S0 to S2
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Conclusion
According to the above presentation, increasing the cost of trampolines will have an impact on
worldwide supply and profitability. The global market case is presented by two frameworks: demand
and supply, and demand and supply elasticity. As there are certain sections that effect global demand
and supply, such as commodity costs and purchaser income.
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References
Astuty, W. and Pasaribu, F., 2021. The Impact of Business Environment and Organizational
Culture on The Implementation of Management Accounting Information System in Some
Hotels. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and
Social Sciences, 4(3), pp.6251-6262.
Gupta, V. and Rubalcaba, L., 2021. Competency-Industry Relatedness (C-IR) Framework for
Sustained Business Growth in Startups during and Beyond Pandemic: Myths and Lessons from
Publicly Funded Innovative Startups. Sustainability, 13(9), p.4632.
Habib, M.S., and et.al., 2021. A robust possibilistic programming approach toward animal fat-
based biodiesel supply chain network design under uncertain environment. Journal of Cleaner
Production, 278, p.122403.
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