Supply and Demand
- Submitted by: scollis123
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- Category: Politics: Economics
- Date Submitted: 08/26/2013 06:53 PM
- Pages: 4
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Supply and Demand Simulation
Supply and demand is a theory of product and wants of that product. An increase in supply will lower prices if not accompanied by an increase in demand and an increase in demand will raise prices unless accompanied by an increase in supply. The supply and demand simulation found on the student website consists of microeconomics and macroeconomics. The simulation presents shifts in the demand and supply curve, equilibrium, price, and quantity. The change in the demands of the two-bedroom apartments affects the price and availability of the apartments. This paper will discuss microeconomics, macroeconomics, supply curve, demand curve, and equilibrium as they relate to the supply and demand simulation.
Microeconomic and Macroeconomic Principles
One microeconomic principle and concept from the simulation is supply and demand, according to the law of demand, more quantities of a product or service will be bought at a lower price than at a high price. To maximize revenue, Goodlife Management lowered rental rates to decrease vacancy rates. Lowering the rental rate created a larger demand for the two-bedroom apartments. Another microeconomic example occurs when Lintech, Inc. moved into town creating more jobs and an increase in population. With the increase in population, the demand increased for two-bedroom apartments, triggering Goodlife Management to raise rental rates.
One example of macroeconomics is the survey showing the number of people working in Atlantis living in surrounding cities because of the lower rental rates. Another example of macroeconomics is the rental cap of $1,550 the government put on monthly rent for two-bedroom apartments. The purpose of the cap is to make living in the city more affordable for middle-class citizens to live in the city.
Supply Curve and Demand Curve Shift
The shift in the demand curve happened when Lintech, Inc. moved into the city of Atlantis. Lintech moving into the city created an increase...
Supply and demand is a theory of product and wants of that product. An increase in supply will lower prices if not accompanied by an increase in demand and an increase in demand will raise prices unless accompanied by an increase in supply. The supply and demand simulation found on the student website consists of microeconomics and macroeconomics. The simulation presents shifts in the demand and supply curve, equilibrium, price, and quantity. The change in the demands of the two-bedroom apartments affects the price and availability of the apartments. This paper will discuss microeconomics, macroeconomics, supply curve, demand curve, and equilibrium as they relate to the supply and demand simulation.
Microeconomic and Macroeconomic Principles
One microeconomic principle and concept from the simulation is supply and demand, according to the law of demand, more quantities of a product or service will be bought at a lower price than at a high price. To maximize revenue, Goodlife Management lowered rental rates to decrease vacancy rates. Lowering the rental rate created a larger demand for the two-bedroom apartments. Another microeconomic example occurs when Lintech, Inc. moved into town creating more jobs and an increase in population. With the increase in population, the demand increased for two-bedroom apartments, triggering Goodlife Management to raise rental rates.
One example of macroeconomics is the survey showing the number of people working in Atlantis living in surrounding cities because of the lower rental rates. Another example of macroeconomics is the rental cap of $1,550 the government put on monthly rent for two-bedroom apartments. The purpose of the cap is to make living in the city more affordable for middle-class citizens to live in the city.
Supply Curve and Demand Curve Shift
The shift in the demand curve happened when Lintech, Inc. moved into the city of Atlantis. Lintech moving into the city created an increase...