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. 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...