Supply and Demand Simulation

1 add up and Demand Simulation Connie F. Dents ECO/365 November 6, 2012 Tulin Koray 2 Supply and Demand Simulation The Supply and Demand Simulation is about the renting of two- bedroom apartments that is managed by Goolife Management Company. The Goodlife Management Company is in the City of Atlantis. The Simulation will certify the different scenarios in how the stir up in demand and return curve, demand and translate geological fault, price ceilings, and the equilibrium changes, also the decrease and increase, and how supplies changes can stay the same.This assignment asks to put two microeconomics and two macroeconomics principles or concepts from the simulation. Before iodine can identify he or she inevitably to know the definition of microeconomics and macroeconomics. As give tongue to by (Colander, 2010) Microeconomics is the study of individual choice and how that choice is influenced by economics forces. Macroeconomics is the study of the economy as state by (Coland er, 2010). Scenario one and four identify microeconomics concepts.In scenario one it describes the Goodlife management company, which manages two- bed room apartments has a large amount of vacancy, to take a shit less(prenominal) vacancy the Goodlife management company would need to lower the roam on the rental property from 28% to 15%. By reducing the rental sum up quantity is except a lower rate with other things remain constant. The Goodlife Company will attain more apartments, which are not at a demanded. 2 The rental company continues to have surplus of apartment but to rent them the rental rate would have to be reduced. In the fourth scenario it explains that Lintech has move to Atlantis, which increase the city ofAtlantis population. The increase demand for apartments have increased, this will increase the rate of rent. Because the rental is elevateder, but this is a demand and supply increase, and the 2,350 apartment would have been rented for the price of $1,400. Macr oeconomics is identified in scenario three and seven. In scenario three a statistics was provided by the Atlantis housing check on the demand for two- bedroom apartments in the city of Atlantis. It states that so many apartments will be demanded, but survey shows an imbalance between quantity demanded and quantity supplied at the price of renting a two-bedroom apartment.Because of high rent folk that works in Atlantis lives in neighboring towns because of the low rent. For there not to be a balance between quantity demanded and quantity supplied the rental rate have to decrease. When the scale is balanced, it show equilibrium has been meet. When the rental rate is below the equilibrium this causes for the quantity demanded is larger than the quantity supplied, this leads to a deficit of apartment in the market. Scenario seven states that the government imposed a price ceiling on rental property in the last two years that cannot exceed $1500. 3The imposing of the price ceiling in t his scenario is below equilibrium as in this case, it makes the quantity supply less than the quantity demand. As stated in the (ecampus. phoenix. edu) prices ceiling can have both economic and social consequences. In scenario two the shift of supply curve is upward sloping, and in scenario four the demand curve shifts to the left. In scenario two where the supply curve is upward sloping this was caused from an increase in rental rate. In scenario four the cause of the shift in the demand curve is caused from more people demanding apartments.In the shift of supply curve it would not feign the equilibrium price, as stated in the (ecampus. phoenix. edu) the supply curve for products are imaginary line at a point, which tells you the quantities, and the decision maker cannot access the supply curve. In the shift of the demand curve nub that the quantity demanded is more than the quantity supplied at the original equilibrium, and the decision maker would increase the quantity demand. In the workplace I would apply it to access as to what student are accomplishing according to mastery, partial mastery, or non- mastery, and his would help all person who are assisting the students to know what his or her needs are. Price elasticity of demands alter consumers as related to the simulation is the increased and decreasing prices of the rental property. Folk that worked in the city of Atlantis lived in neighboring city because of the high priced two-bedroom apartments. 5 Reference Economics for Business, University of Phoenix, Retrieved from https//ecampus. phoenix. edu Colander, D. C. (2010). Economics (8th ed. ). New York, NY McGraw-Hill