Supply and Demand Simulation Paper

Supply and Demand Simulation Paper Principles of Microeconomics 365 Matthew J. Angner June 1, 2010 University of Phoenix Online Introduction The translate and hold simulation was based on the management of letting apartments by GoodLife Management. The apartments are in a fictitious town called Atlantis. Topics that willing be reviewed in this paper include changes in fork over and read, how shifts in supply and accept affects decision-making, key points from the reading assignments that were accentuate in the simulation, application of the supply and demand concepts at the origins workplace, how equipment casualty elasticity of demand affects the decision-making of the consumer and to the organization, and a compend of the results of the assessment. Causes for Change in Supply and Demand The causes for changes in supply and demand in the simulation were driven by the availability of two-bedroom rental apartment, demand for these rentals, the bar of available renters, and the price per month. In the simulation, the demand curve is downward sloping so as the price of the rentals decreased, the demand increase. However, the supply curve is upward sloping. The number of apartments increased as the price increased. A surplus in the merchandise for the apartments exerts downward pressure on the price.

Adversely, a shortage in the merchandise exerts an upward pressure on price. To attract renters, GoodLife would desire to lower prices if there were a surplus in the market or increase prices if there were a shortage in the market. In order to maintain the balance of quantity demanded and quantity supplied, GoodLife would need to raise their prices. Shifts in Supply and Demand Management directive changes of GoodLife along with population changes within Atlantis and the neighboring areas affected supply and demand. Preference changes of the tenants caused the demand for apartments to decrease. GoodLife management converted rental apartments into condominiums to sell... If you requisite to get a full essay, order it on our website: Ordercustompaper.com

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