Supply & Demand Stimulation

Supply & Demand Stimulation

  • Submitted By: ajaywuiser
  • Date Submitted: 02/09/2014 1:44 PM
  • Category: Business
  • Words: 470
  • Page: 2
  • Views: 46

Supply and Demand Stimulation
A-Jay Wuiser
ECO/365
September 30, 2013
Zack Zardo

Supply and Demand Stimulation
The simulation takes place in the town of Atlantis, which through various scenarios uses the rental of a two-bedroom apartment and the effect supply and demand has on those rentals. GoodLife is the property management company that manages the apartment rentals in Atlantis. Currently, GoodLife is the only company who manages these rentals so holds a monopoly in the town. The idea behind this simulation is to identify the two microeconomic and two macroeconomic principles present in the course simulation explaining why these principles are categorized as macro or microeconomic. We are to also determine one shift of the supply curve and one shift of the demand curve from the simulation, explaining why these shifts happen. For each shift we were to individually analyze how it would affect the equilibrium price, quantity, and decision making. It will refer to how one may apply what was learned about supply and demand from the simulation to the workplace or the understanding of can be applied in a real life-situation. A brief explanation of ways in which concepts of micro and macroeconomics can help in understanding factors that influence movements in supply and demand on the equilibrium price and quantity. Last, referencing the stimulation explain how the price elasticity of demand has an impact on the consumer’s purchasing and on the pricing strategy of the company.
The two microeconomic principles that were presented in the simulation was the supply, demand and equilibrium. Microeconomics is the effort to understand individual households decision making process. Microeconomics influence is driven by the availability of the rental apartments, the demand for rentals, number of available renters, and the price for the units. Macroeconomics studies the entire economy. This includes not only local but the national economy also. Factors that...

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