Eco 354 Supply and Demand Simulation

Topics: Supply and demand, Economics, Microeconomics Pages: 3 (1032 words) Published: August 6, 2013
Supply and Demand Simulation

ECO/365
July 24, 2013

Supply and Demand Simulation
The Supply and Demand Simulation was very insightful. I related to it since I am in property management although I did have some difficulty with the reasoning. The simulation was designed to help us understand demand and supply as well as the effect of a price ceiling on a specific quantity as well as the quantity supplied. According to our textbook, Microeconomics is the study of individual choice and how that choice can be influenced by economic forces. In this simulation, the city of Atlantis has a property management company by the name of Goodlife Management who is responsible for leasing two bedroom apartment homes that are in high demand. The two microeconomics principles are the supply of the two-bedroom apartments and the demand for renting them. Macroeconomics is the study of the economy as a whole. It considers the problems of inflation, unemployment, business cycles, and growth. The macroeconomic principles that are a factor is the increase in the population and growth of the city that has caused an increase in the demand of the apartments. The increase of the population had to deal with the economy because of a new business opening up and therefore creating job opportunities. Since the city of Atlantis ‘employment rate is rising the demand for the apartments will increase and decrease as is the concept of macroeconomics. The simulation accurately details what happens to the platform of supply and demand when there are changes to the rental market as there was in the city of Atlantis. The simulation reflects what changes occur in supply and demand when there is a need to increase the occupancy rate to the increase of new residents as a result to the growth of the new economy. When the rate of occupancy is low is causes the rate of vacancy to be high showing an increase of the available apartments. When you have a high vacancy it will cause the prices of the...
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