Supply and Demand Simulation

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Supply and Demand Simulation
Connie F. Dents
ECO/365
November 6, 2012
Tulin Koray

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Supply and Demand Simulation
The Supply and Demand Simulation is about the rental of two- bedroom apartments that is managed by Goolife Management Company. The Goodlife Management Company is in the City of Atlantis. The Simulation will show the different scenarios in how the shift in demand and supply curve, demand and supply shift, price ceilings, and the equilibrium changes, also the decrease and increase, and how supplies changes can stay the same. This assignment asks to identify two microeconomics and two macroeconomics principles or concepts from the simulation. Before one can identify he or she needs to know the definition of microeconomics and macroeconomics. As stated by (Colander, 2010) Microeconomics is the study of individual choice and how that choice is influenced by economics forces. Macroeconomics is the study of the economy as state by (Colander, 2010). Scenario one and four identify microeconomics concepts. In scenario one it describes the Goodlife management company, which manages two- bed room apartment’s has a large amount of vacancy, to have less vacancy the Goodlife management company would need to lower the rate on the rental property from 28% to 15%. By reducing the rental rate quantity is but a lower rate with other things remain constant. The Goodlife Company will have more apartments, which are not at a demanded.

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The rental company continues to have surplus of apartment but to rent them the rental rate would have to be reduced. In the fourth scenario it explains that Lintech has move to Atlantis, which increase the city of Atlantis population. The increase demand for apartments have increased, this will increase the rate of rent. Because the rental is higher, but this is a demand and supply increase, and the 2,350 apartment would have been rented for the price of $1,400....
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