Supply And Demand Simulation: Equilibrium And Business Decisions

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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…show more content…
My husband is a farmer and uses the principles of microeconomics and macroeconomics when determining what crops will sell well. As the world continues to grow and the need for food increases, farms will need to meet this demand. I have seen years when the demand is high and the sales price is high, but there have also been year when the demand is low, sales price is low, and the crop is never picked; the cost of harvesting is more than the sales price. Learning to make sound business decision using past and present supply and demand data is imperative to being successful. Understanding the concepts and principles of microeconomics and macroeconomic and how they affect supply, demand, and equilibrium are necessary for the health of any business. Microeconomics focuses on supply and demand, and using data from supply and demand curves can help a business look for ways to decrease pricing, which would increase production, and keep the business competitive. Macroeconomics focuses on the economy as one; using national inflation data and aggregate income data can help a business keep costs down which will keep consumer prices down, all the while keeping production

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