January 31, 2010
Analyzing Supply of Demand Simulation
Supply and demand is a significant element of business procedures thus this paper will evaluate how supply and demand affects a business via a simulation provided by the University of Phoenix. In this paper, I will talk about the reasons for changes that occur in supply and demand. I will talk about how shifts in supply and demand influence the organization’s decision making process as well. I will also cover the four key points established within the reading assignments and how they relay to the simulation and how every theory can be related to situations in a workplace environment. This paper will establish how price elasticity of demand influences the decisions of the consumer and the organization. Changes in Supply and Demand
There are quite a few factors that influence supply and demand in the simulation. These factors demand for the apartments, the availability of the apartments, the price of the apartments, the quantity of people or renters who are interested. According to the simulation, a demand curve is downward sloping. During the simulation, as the price of the apartments decreased, demand for them increased. The supply curve, however, is sloping upwards. The number of two-bedroom apartments increased as the price increased. An excess in the industry for the apartments make use of downward demands on the price for the apartments. So therefore in order for GoodLife to attract renters, they would need to lower their prices. Shifts that Affect Decision Making
The different shifts in supply and demand affects decision making in several ways in regard to the simulation. In the simulation the changes that GoodLife were trying to make as well as the changes in the population of Atlantis had an effect on the supply and demand of the simulation. Since the renters changed their preferences, the demand for the apartments that...