The Atlantis simulation shows the platform of supply and demand in a real estate/rental market. This simulation shows what causes the fluctuations in supply and demand from the need to increase occupancy rate to an influx of new residents due to growth within the local economy. These factors are direct implications of the constant changes happening to supply and demand within the Atlantis community. When occupancy is low it shows there is an increased supply of apartments available to rent. When the need occurs to increase the total occupancy within the complex, prices will begin to drop in an effort to balance the occupancy rate. When this occupancy rate is high, the prices will increase for the few openings the complex may have. An Economic factor is another cause that directly affects the supply and demand curve. When a company decided to expand their operations and open a large facility in Atlantis the result was an increase in the population that caused the supply to drop and the demand to increase which in result caused the rental prices to increase. Each of these causes directly affect the supply and demand curve, so when the S&D curve needs to be read company’s will be aware of the most current market conditions to make the most educated decision.
When a real estate company in Atlantis reads a supply and demand chart they use the information provided to make educated decisions on how they operate their business. From the price of the property, advertising costs and expansion planning the supply and demand chart offers great insight for decision-making. When a company with a large number of two bedroom apartments for rent wants to ensure they are getting top dollar for their rentals. If there is a high demand for two bedroom apartments they may be able to rent properties that would normally rent for $1,000 to rent for $1,200 depending on how high the demand is. Where as if the demand was lower than normal that same apartment may rent for $800. When the...
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