Eco 365 Essay

829 WordsSep 23, 20144 Pages
Supply and Demand Simulation Tamara Ray Eco 365 February 25, 2013 John Ilokwu Supply and Demand Simulation This assignment uses the Supply and Demand simulation on the student forum. The simulation is made up of several scenarios that present shifts in the supply and demand curves, including a reason for each shift. Following each scenario is an analysis of how the shift affects equilibrium and business decisions. Microeconomic and macroeconomic concepts and their applicability to the scenarios are also explained. Using the information from the simulation, one can appreciate how important sound business decisions are the key to success. The simulation is based on Atlantis, a typical suburban neighborhood where comfort and amenities are in demand (University of Phoenix, 2013). Scenarios presented within the simulation use a two-bedroom apartment for the basis of the supply and demand simulation. One scenario focuses on maximizing revenues and maintaining a specific vacancy level while remaining competitive in the property management market. Microeconomics is the study of individual and business economic behavior; the first few scenarios involve Good Life Property Management and focuses on its ability to make sound business decisions while maintaining equilibrium. Sound business decisions include using the supply and demand curves to maximize revenue while keeping the vacancy rate low. As Atlantis experiences growth another scenario focuses on rent control set by government; this will offer affordable rent to the citizens of Atlantis. Macroeconomics is the study of the economy as one, looking at the Gross National Product and how it is affected by unemployment, price levels, aggregated income, and growth; as Atlantis is growing it is recognized that there is a need to maintain affordable housing. One scenario has a company moving to

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