Supply and Demand Simulation
I have worked on a simulation that was conducted to understand supply and demand when renting out apartment homes. In this paper I will briefly explain two microeconomics and two macroeconomics principles, it will also include one shift of the supply curve and demand curve in the simulation. Also I will talk about for each of the shifts the affect of the equilibrium price, quantity, and decision making will be analyzed. It will also describe the supply and demand from the simulation and how to apply it in the workplace is included.
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Lastly I will talk about the concepts of macroeconomics will be explained, and how understanding the factors that affect shifts in supply, and demand on the equilibrium price. In addition an explanation of how price elasticity of demand affects a consumer’s purchasing and firms pricing strategy will be included. The first thing I will be explaining will be that I will identify two microeconomics and two macroeconomics principles or concepts from the simulation and explain why I have categorized these principles or concepts as macroeconomic or microeconomic.
A concept that was used in the simulation would be the decision making I have to make in order to make Good life apartment complex more successful. Another concept used in the simulation would be the studying the behavior of the economy. Depending of how the economy is will determine the prices we have to put on our apartment complex in order to keep up with other surrounding apartments and make ours more successful. This is determine by checking the employment rate, supply and demand. Identify at least one shift of the supply curve and one shift of the demand curve in the simulation.
What causes the shifts? The changes in supply and demand in the simulation are caused by different factors throughout the simulation which causes the shift to change in supply and demand curve. The causes included changes in vacancy rates, low rental rates in close by towns, imbalances between quantity demanded and quantity supplied at current rental rates, changes in population (depending the population), personal incomes, and affordability of apartments. All these things are what cause the supply and demand curve.
The more people make and the more people are where the apartment complex are at determines weather the prices should be high or low and if we will be successful renting it out at our rates. For each shift, analyze how it would affect the equilibrium price, quantity, and decision making. The shift affected by supply or demand, is determined by weather if the supply or demand were decreased or increased. If the shifts were to the left or right had to be taken into consideration before decisions could be made.
A supply shift to the right indicated a decrease in the rental rate was necessary, whereas a supply shift to the left indicated an increase in the rental rate was necessary to reestablish equilibrium. How may you apply what you learned about supply and demand from the simulation to your workplace or your understanding of a real-world product with which you are familiar? I can apply what I learned about supply and demand from the simulation in my workplace because I now have a better understanding of how things work.
I know how I can attract consumers and what they are looking for in order to make my workplace more successful. I also have a better understanding of how depending on the economy will determine how my business will run and what will help my business still be successful even when the economy is no that great. How do the concepts of microeconomics and macroeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?
The concepts of microeconomics helped me understand the factors that affect shifts in supply and demand on equilibrium price and quality by helping me with decision making. Also it helped be because sometimes the price reflects a lot on the quality of the item you are purchasing. This affects shift because if you are sale something that is good quality and a fair price that means you are most likely to sale more which will most likely have a more successful rate. This will also help me in the affects of how the economy is because people today want things that are good quality and a price that is still affordable.
In conclusion, this simulation was a lot of helped and will be a great reference in the future for any future supply and demand questions or concerns I may have. I know have a better understanding of the supply and demand curve of how it works and what can cause the changes. Also I have a better understanding of how prices are determined and what helps determine these prices, specially when it comes to apartment complex of how it helps in order to have more rental apartments and have a more successful business.