Supply and Demand Simulation

1 Supply and Demand Simulation Connie F. Dents ECO/365 November 6, 2012 Tulin Koray 2 Supply and Demand Simulation The Supply and Demand Simulation is around the take aimal of both- sleeping room flat tires that is managed by Goolife Management Company. The Goodlife Management Company is in the City of Atlantis. The Simulation leave show the different scenarios in how the swag in demand and supply abridge, demand and supply shift, monetary value ceilings, and the counterweight changes, also the decrease and ontogenesis, 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 one can identify he or she needs to know the definition of microeconomics and macroeconomics. As state by (Colander, 2010) Microeconomics is the memorise of individual choice and how that choice is influenced by economics forces. Macroeconomics is the study of the economy as state by (Colander, 2010). Scenario one and quartet identify microeconomics concepts.In scenario one it describes the Goodlife management alliance, which manages two- bed room apartments has a large amount of vacancy, to hurt less vacancy the Goodlife management company would need to lower the rate on the rental property from 28% to 15%. By reducing the rental rate standard is just a lower rate with other things remain constant. The Goodlife Company will have more apartments, which ar not at a demanded. 2 The rental company continues to have surplus of apartment entirely to rent them the rental rate would have to be reduced. In the fourth scenario it explains that Lintech has track down 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 higher, but this is a demand and supply increase, and the 2,350 apartment would have been rented for the price of $1,400. Macroeconomics is ide ntified in scenario tierce and seven. In scenario three a statistics was provided by the Atlantis housing survey 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 residual 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 shortage 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 elapse $1500. 3The imposing of the price ceiling in this 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 companionable 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 tidy sum demanding apartments.In the shift of supply curve it would not affect the equilibrium price, as stated in the (ecampus. phoenix. edu) the supply curve for products be imaginary course of action at a point, which tells you the quantities, and the decision maker cannot access the supply curve. In the shift of the demand curve means 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 affected 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 savoir-faire Economics for Business, University of Phoenix, Retrieved from https//ecampus. phoenix. edu Colander, D. C. (2010). Economics (8th ed. ). New York, NY McGraw-Hill