# mergers and joint ventures

## mergers and joint ventures

• Date Submitted: 12/14/2014 5:26 AM
• Category: Business
• Words: 929
• Page: 4
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Macroeconomics and the Laws of Supply and Demand
Brach Radcliffe
ECO/365
December 1, 2014
Kevin McKinley
Macroeconomics and the Laws of Supply and Demand
Identify two microeconomics and two macroeconomics principles or concepts from the simulation. Explain why you have categorized these principles or concepts as microeconomics or macroeconomics.
Supply and demand are the two major principles covered in the simulation. The major focus is on the supply and demand of rental properties. The macroeconomic factors are changes in population trend and the choice to buy or rent the rental properties. These factors directly influence these changes. “The law of demand states that the quantity of a good demanded in inversely related to the goods price. When price goes up, quantity demanded goes down. When price goes down, quantity demanded goes up”. (Colander, 2013 Ch.4 Pg. 78) “The law of supply states: Quantity supplied rises as price raises, other things constant. Or alternatively: Quantity supplied falls as price falls other things constant”. (Colander, 2013 Ch.4 Pg. 84) The demand curve for any product is an imaginary line at a point in time. This tells you the quantities consumers would demand at various prices of the product. Demand curve is a graphical representation of demand that shows the quantities consumers are able and willing to buy at various prices. A normal demand curve is downward sloping in accordance with the law of demand.

In the first scenario the primary objective was to decrease the vacancy rate, while maximizing profit. I made the decision to lower the rent rate to \$950 per month. This cut the vacancy rate to 5.00%. It raised the revenue to 1.81 million. There were 2,000 apartments that needed to be rented. Only 1,900 were rented at this rental rate. This left a surplus of 100. If the object were to lease all the apartments, the rental rate would need to be reduced further.
It would not be profitable to...