Eco 365 Supply & Demand Paper
Supply & Demand Simulation
Erica Bradford
ECO/365
June 19, 2013
Jeremy Alessandro
Supply & Demand Simulation
Goodlife Management is the sole provider of apartments available for rent in the city of Atlantis in which the supply and demand simulation provided by UPOX takes place. The simulation provides excellent, real-life examples of how the supply and demand curves may shift based upon various factors that occur within the market in Atlantis. The following details such examples as microeconomics versus macroeconomics, equilibrium pricing, and what drives the elasticity of the market price of the two-bedroom apartments that are available for rent in Atlantis.
The study of microeconomics focuses on the impact of individual choices that are made within the economic market. In contrast, macroeconomics is the study of the entire economy as a whole. One example in the simulation of microeconomics was when the property manager was expected to lower the vacancy rate from twenty-eight percent down to fifteen percent. The other example of microeconomics was when the property manager was given a goal to bring the vacancy rate down to zero percent in order to obtain full occupancy. Both of these microeconomic scenarios only required the property manager to change one specific aspect of the apartment rentals without too much consideration of other contributing factors. One example of macroeconomics in Atlantis was caused by numerous factors such as the increase in businesses, construction, congestion, lack of affordable housing, and the city council enforcing a ceiling rental amount affecting all two-bedroom apartments. A second example of macroeconomics occurred when the decrease in demand of the rental apartments caused Goodlife Management to convert some of the apartments to condominiums for sale to broaden the opportunities for an increase in tenants. In both examples provided, there were multiple factors that needed to be considered instead of just
Erica Bradford
ECO/365
June 19, 2013
Jeremy Alessandro
Supply & Demand Simulation
Goodlife Management is the sole provider of apartments available for rent in the city of Atlantis in which the supply and demand simulation provided by UPOX takes place. The simulation provides excellent, real-life examples of how the supply and demand curves may shift based upon various factors that occur within the market in Atlantis. The following details such examples as microeconomics versus macroeconomics, equilibrium pricing, and what drives the elasticity of the market price of the two-bedroom apartments that are available for rent in Atlantis.
The study of microeconomics focuses on the impact of individual choices that are made within the economic market. In contrast, macroeconomics is the study of the entire economy as a whole. One example in the simulation of microeconomics was when the property manager was expected to lower the vacancy rate from twenty-eight percent down to fifteen percent. The other example of microeconomics was when the property manager was given a goal to bring the vacancy rate down to zero percent in order to obtain full occupancy. Both of these microeconomic scenarios only required the property manager to change one specific aspect of the apartment rentals without too much consideration of other contributing factors. One example of macroeconomics in Atlantis was caused by numerous factors such as the increase in businesses, construction, congestion, lack of affordable housing, and the city council enforcing a ceiling rental amount affecting all two-bedroom apartments. A second example of macroeconomics occurred when the decrease in demand of the rental apartments caused Goodlife Management to convert some of the apartments to condominiums for sale to broaden the opportunities for an increase in tenants. In both examples provided, there were multiple factors that needed to be considered instead of just
References: Colander, D. C. (2010). Economics (8th ed.). New York, NY: McGraw-Hill. UPOX. (2013). Economics for Business 1: Applying Supply and Demand Concepts. Retrieved at: https://ecampus.phoenix.edu/secure/aapd/vendors/tata/UBAMsims/economics1/economics1_supply_demand_simulation.html.