Supply and Demand Simulation
In today’s society, microeconomics takes a look at market behavior of consumers and businesses to begin recognize and understand some of the decision making procedures and processes that take place involving consumers as well as businesses. Microeconomics is a concept of human interaction that involves buyers and sellers and the common issues that manipulate some of the choices the buyers and sellers make. Narrowing the focus on microeconomics is the basic concept of supply and demand in the individual markets. To understand the supply and demand concept, one must understand that the supply and demand concept is the center or the back of the market economy. An example of supply and demand comes from a supply and demand simulation.
The supply and demand simulation concerns itself with managing rental apartments through a fictitious property management firm called Goodlife Management. Goodlife Management manages seven two bedroom apartment complexes within a fictitious town that goes by Atlantis (University of Phoenix, 2008). Throughout the supply and demand simulation, changes are made to view the affect that supply and demand has. In addition, there are shifts in the supply and demand that do affect Good Life’s decision making processes (University of Phoenix, 2008).
Some of the causes that change the supply and demand scenario are rental apartment availability, the demand for a rental apartment, the number of available renters, and then there is the price. The shifts in supply and demand are in a constant state of flux due to various factors that causes supply and demand to increase or decrease (University of Phoenix, 2008). For instance, within the simulation, a population increase causes a demand for more two bedroom apartments but changes in preferences causes the demand to decrease. In the same context, a change in expectations results in the supply of these two bedroom apartments to decrease. Because of these factors, the...