Supply and Demand
- Submitted by: robcar87
- Views: 460
- Category: Other
- Date Submitted: 05/21/2013 06:26 PM
- Pages: 3
- Report this Essay
Supply and Demand Simulation
Robert Oklesson
ECO365
May 8, 2013
Gary Wiessner
Supply and Demand Simulation
So what is supply and demand? Supply and demand is the price determination in a market, it is the unit price of a product, and the price will vary depending on the public demand for that particular product. In this essay I will discuss how supply and demand on a housing market affects the city of Atlantis.
The two different microeconomic concepts I believe for this simulation are the vacancy rate for the two bedroom apartments and also the pricing for these apartments by maximizing vacancy rates and accommodating the increase in demand due to a new company coming to town. The first macroeconomics concepts is that local government has put a price ceiling on two bedroom apartments to make them affordable for lower income families. The second macroeconomics concept is that a recent housing survey showed families are living in other cities due to pricing.
The shift in the supply curve was that the two bedroom apartment rentals were priced to high in which it made a high vacancy rate of 28%. The shift in the demand curve happened when Susan Hearst suggested that the vacancy rate needed to be around 15%, which made the company have to lower rental costs to reach this vacancy goal.
Of course when a company adjusts their prices of a particular product, in this simulation it is two bedroom apartments for rent, this move affects the quantity of apartments available. As a company raises the price of the apartment the availability of apartments will increase and the quantity of available apartments will decrease when housing prices decline.
This simulation might be helpful at my workplace due to the supply and demand of contractors needing airspace range resources and even aircraft to accomplish their test missions. In my real-life I have come across the effects of supply and demand in the housing market. With the low prices of homes currently creates a...
Robert Oklesson
ECO365
May 8, 2013
Gary Wiessner
Supply and Demand Simulation
So what is supply and demand? Supply and demand is the price determination in a market, it is the unit price of a product, and the price will vary depending on the public demand for that particular product. In this essay I will discuss how supply and demand on a housing market affects the city of Atlantis.
The two different microeconomic concepts I believe for this simulation are the vacancy rate for the two bedroom apartments and also the pricing for these apartments by maximizing vacancy rates and accommodating the increase in demand due to a new company coming to town. The first macroeconomics concepts is that local government has put a price ceiling on two bedroom apartments to make them affordable for lower income families. The second macroeconomics concept is that a recent housing survey showed families are living in other cities due to pricing.
The shift in the supply curve was that the two bedroom apartment rentals were priced to high in which it made a high vacancy rate of 28%. The shift in the demand curve happened when Susan Hearst suggested that the vacancy rate needed to be around 15%, which made the company have to lower rental costs to reach this vacancy goal.
Of course when a company adjusts their prices of a particular product, in this simulation it is two bedroom apartments for rent, this move affects the quantity of apartments available. As a company raises the price of the apartment the availability of apartments will increase and the quantity of available apartments will decrease when housing prices decline.
This simulation might be helpful at my workplace due to the supply and demand of contractors needing airspace range resources and even aircraft to accomplish their test missions. In my real-life I have come across the effects of supply and demand in the housing market. With the low prices of homes currently creates a...