Eco/365 Supply and Demand

Topics: Supply and demand, Microeconomics, Elasticity Pages: 3 (874 words) Published: November 10, 2012
Supply and Demand

Supply and Demand
The economy is run by the concept of supply and demand. The simulation provided a practical learning experience that brings together the concept of micro and macro economics. I will try to summarize my findings and the inner workings of the concept of supply and demand that the simulation offered. Economics is defined as “the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of society” (Colander, D.C., 2010). In other words, economics focuses mainly on three aspects and those are: what are we going to produce, and how much of it are we going to produce, in what way are we going to produce it, and lastly who are we going to produce it for. Microeconomics is more of an individual study and the choices individuals make, while macro economics focuses on the study of the economy as a whole (Colander, D.C., 2010). In this simulation as people started moving into Atlantis they needed housing. People wanted to live in what was described in the simulation as the perfect city, tree lined streets, low pollution, and well maintained and peaceful city. Goodlife had housing, and was able to raise the prices for the apartments that they leased due to the supply and demand concept. The choice is always the consumers when it comes to renting from Goodlife, or they could go outside of Atlantis to search for housing that may be cheaper. Because of a sudden rise in the population of Atlantis this lead to a spike in the demand in the housing market, and Goodlife could raise its prices because of that housing demand inside Atlantis. The next thing we look at is the opportunity cost, which is defined as the “benefit that you might have gained from choosing the next-best alternative” (Colander, D.C., 2010). This ultimately comes down to consumer choice and if someone could live in a neighboring community in a lower rent...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Eco 365 Supply and Demand Simulation Essay
  • Supply & Demand Paper Eco/365
  • Eco 365 Supply & Demand Paper
  • Eco 365 Supply and Demand Essay
  • Supply and Demand Simulation Essay
  • Laws of Supply and Demand Essay
  • ECO 365 Week 2 Essay
  • ECO/365 Essay

Become a StudyMode Member

Sign Up - It's Free