April 29, 2013
Applying Supply and Demand Concepts
The supply and demand simulation was a very helpful tool in understanding the effects of external factors on the supply and demand curves. Understanding this concept is fundamental in preparing for real life situations. I personally enjoyed the fact that the simulation was based on a real estate management company. I was able to understand and relate to the information given. There are a series of questions that will be answered and the topic of this paper will cover different concepts of micro and macroeconomics including; shifts in the supply and demand curves and its effect on the equilibrium price, quantity, and decision making. I will explain my understanding and applications of these concepts to my workplace. Finally, it will cover how the price elasticity of demand affects a consumer’s purchasing and the firm’s pricing strategy
Identify two microeconomics and two macroeconomics principles or concepts from the simulation. Explain why you have categorized these principles or concepts as macroeconomic or microeconomic. The concepts of supply and demand, as well as, scarcity are two examples of microeconomics that can be seen from the simulation. I have decided to categorize these as such because these concepts will have a direct effect on the personal decisions that the consumers will have. The increase of jobs and population in the simulation has contributed to the scarcity of available housing as well as the shifts in the demand and supply curves. Now, if I were to expand my consideration into macroeconomic, the broader events that have taken place in the simulation would be the governmental restrictions on the rental price and the economic growth. These external factors exhibit a greater amount of influence on the population as a whole compared the microeconomic concepts discussed earlier. Identify at least one...