Supply And Demand Simulation Essay

832 words - 4 pages

Supply and Demand Simulation

This paper discusses the Applying Supply and Demand Concepts simulation from the student website. First, it seeks to identify two microeconomic principles and two macroeconomic concepts presented in the simulation with explanations why they are categorized as macro or microeconomic. It also identifies one shift of the supply curve and one shift of the demand curve and the shifts’ cause. Additionally, impact on equilibrium price, decision making, and quantity are analyzed. Different ways are referred in which concepts about supply and demand can be applied in a real life/ workplace situation. Ways are shown in which concepts of micro and macroeconomics assist ...view middle of the document...

d.), this rental rate would mean that fewer apartments would be leased than tenants are willing to pay for leading to a shortage in the market. Shifts in the demand curve were also demonstrated when there was an increase in income, as more people could afford condominiums, causing a change in preference.
In the University of Phoenix simulation (n.d.), one shift of the supply curve and demand curve is caused by a change a preference. A change in preference caused the demand for two-bedroom rented apartments to decrease, and the demand for condominiums to increase. Expecting a further decrease in demand, some apartments for rent were converted to condominiums for sale, causing a decrease in supply (University of Phoenix, n.d.). In the University of Phoenix simulation (n.d.), at any given rental rate, there are fewer tenants for apartments, and fewer apartments are leased. This results in a decrease in demand for and supply of apartments. Therefore, both the demand curve and the supply curve shift to the left. (University of Phoenix, n.d.).
In the University of Phoenix simulation (n.d.), when the shift in supply is more than the shift in demand, there is a shortage at the original equilibrium rental rate, because at this rental rate, quantity supplied on the new supply curve is less than quantity demanded on the new demand curve. As the rental rate increases, quantity demand decreases, and quantity supply increases. This adjustment process continues until equilibrium is attained.

From what I learned...

Other Essays Like Supply and Demand Simulation

Supply and Demand Simulation Essay

731 words - 3 pages rent. This then can also cause an increase in the price for the rental apartments. In the case where the prices were above equilibrium, the situation would have had other circumstances as a surplus of these available units would be lowered in price by force. From the simulation, the two primary microeconomic principles would be supply and demand. The rental changes that occurred were the main components to increasing revenue and demand. The

Eco365 Supply and Demand Essay

730 words - 3 pages Supply and Demand Simulation June 4, 2012 Supply and Demand Simulation Introduction Supply and demand is a fundamental concept of economics and the economy would not survive without supply and demand. The quantity of a product or service is the demand and the supply is how much the market can offer. The simulation will allow us to understand concepts and principals of microeconomics and macroeconomics. Secondly, we can easily identify

Supply And Demand

726 words - 3 pages small scale where macroeconomics will study the whole system (Merriam-Webster, 2014). Principles and Concepts The simulation provided for an in depth experience into an example of supply and demand in the housing market. GoodLife Management is the only apartment owner in the city of Atlantis, because of this GoodLife has a monopoly in this market. This monopoly allows more control over the pricing structure of the apartment living in

Supply and Demand

2169 words - 9 pages Supply & Demand Analysis: Fast Food Industry Determinants of Demand The Determinants of Demand are variables that affect the overall demand of a market. In the text, there are 5 variables that are discussed. These include tastes, income, other goods, expectations, and buyers. These variables help define how the market will react to certain economic situations (Schiller, 2010). In this case, the economic factors and how they affect the fast

Supply and Demand Paper

826 words - 4 pages Supply and Demand Paper I have chosen to write about the purchase of a new home for this paper. For most people, buying a home is one of the biggest things they do in their lives. The purchase of a home is something that takes careful consideration and thought. Most first-time home buyers do not realize how many factors go into determining the price of a house. There are so many more things involved than just the asking price. Closing costs

Supply and Demand Paper

853 words - 4 pages The good I have chosen for this supply and demand paper is buying a new car. I just bought a brand new 2012 Honda Accord LX from the Crystal lake, Illinois Honda dealer. I traded in my old 1999 Honda Accord EX which had 195000 miles on it. I had bought that car new as well from the Honda dealer. I was going to get my old car fixed but it would have cost me 2000.00 the Honda dealer said. They suggested I buy a new one and I was promised a

Supply and Demand

1103 words - 5 pages pounds per person on a boneless equivalent basis” (para. 2). The writer will investigate the trends in consumption patterns, which include the utility derived from meat, changes in demand, market prices and the elasticity of demand for meat. Economics, the law of supply and demand, and discuss factors that lead to a change in supply and demand will also be discussed. Economics is defined by Merriam-Webster Online as “a social science concerned

Supply and Demand Paper

733 words - 3 pages 1 Supply and Demand Jesse Cisco XECO/212 8/13/2012 Jaime Medina Supply and Demand 2 I have chosen to write about purchasing a computer. There is such a variety of computers and with technology improving every day, many factors are encouraging or discouraging people to buy them. For example, when I bought my new computer I was very specific on what I was looking for in a new computer. I wanted a lot of memory, a very large

Supply and Demand Paper - 531 words

531 words - 3 pages Supply and Demand Paper XECO/212 Sara Sheikh 6//11 Felicia Sullivan My paper is describing the supply and demands of purchasing a washing machine. Everyone wants just a washer and dryer in home because of the conveince, but have you ever just thought about all of the decision when purchasing something of this magnitude. In my essay I will explain the factors that could possibly change the supply and demand of purchasing a washer. I will

Econometrics Demand and Supply

1397 words - 6 pages for the RBA in its quest for price stability by measuring the impact of a change in the official cash rate on money demand and hence inflation. The more responsive money demand is to the interest rate, the more elastic is the LM curve. The LM curve holds constant price-level, expectations, and Money Supply. When interest rates are very low, people have no special reason to avoid holding idle cash, and will hold considerable amounts. If they hold lots of cash idle, the fixed amount of money cannot support very much spending. Lots of idle cash means that the representative dollar is not being spent very frequently.

Supply and Demand

1620 words - 7 pages Supply and Demand Debra Nelson HCS 552 02/06/2012 John Pew Supply and Demand Over the past forty years, health care spending grew at a rate faster than the economy. The outcome of this increased spending meant that portion of the government budget spent on health increased threefold. The escalated spending was not devoted to one area, but permeated the share of national income devoted to health care. This ongoing spending growth

Related Papers

Supply And Demand Simulation Essay

752 words - 4 pages Supply and Demand Simulation In today’s society, microeconomics takes a look at market behavior of consumers and businesses to begin recognize and understand some of the decision making procedures and processes that take place involving consumers as well as businesses. Microeconomics is a concept of human interaction that involves buyers and sellers and the common issues that manipulate some of the choices the buyers and sellers make

Supply And Demand Simulation Essay

968 words - 4 pages Supply and Demand Simulation Paul C. Hostman ECO 365 February 2, 2015 Dr. Jong Yi Supply and Demand Simulation Objective The Supply and demand simulation is designed to apply real world business concepts to gain a better understanding of how a company analyzes supply and demand to optimize decision making. The simulation sample industry of rental property management can be used as a learning tool to identify the causes that change

Supply And Demand Simulation Essay 901 Words

901 words - 4 pages Supply and Demand Simulation Justin Valence ECO 365 Mar 18, 2013 Roger Hinds Supply and Demand Simulation Microeconomics affect everyday lives in ways we do not necessarily see. Take for example the supply and demand simulation. This simulation was a good way to determine first hand how certain circumstances change the supply and demand and how it affects prices of two-bedroom apartments. Circumstances such as inflation, unemployment

Supply And Demand Simulation Essay 1302 Words

1302 words - 6 pages Supply and Demand Simulation ECO/365 Principles of Microeconomics Abstract Atlantis is a small and well maintained city. Positive aspects about living in this city include large parks, jogging paths, and maintained streets and sidewalks. When a person is deciding to move into the city of Atlantis or move around within the city, two bedroom apartments become one of many places to look for housing. GoodLife Management is a company who