eco/365 week 2 individual

Topics: Supply and demand, Elasticity, Demand curve Pages: 4 (1287 words) Published: September 28, 2013


Supply and Demand Simulation
ECO 365

Supply and Demand Simulation
The Supply and Demand simulation was reviewed on the student website demonstrated the concepts of the concepts of microeconomics and macroeconomics. The principles of microeconomics and macroeconomics were explained and applied throughout the simulation demonstrate the rationale for the shifts in the supply and demand curve. Each shift is analyzed showing the effects of the equilibrium price, quantity, and decision making process for the simulated company represented. The concepts encountered in the simulation provide an opportunity to better understand how each can be applied to my current workplace. The Scenario provides an explanation of the importance of how price elasticity affects demand and the effects of pricing strategy for consumers and companies in regards to their relevant success. In the simulation a neighborhood called Atlantis is used. Atlantis is a nice neighborhood with many amenities that consumers demand (University of Phoenix, 2012). A two bedroom apartment rental in Atlantis is used in the simulation to present the effects of supply and demand. The simulation presents several scenarios that have been acquired by the management company of the two bedroom apartment rentals. The scenarios illustrate how price can affect supply and demand while being competitive within the market. Microeconomics is the study of behavior on a smaller scale such as households and businesses used throughout the scenario (Colander, 2010). This is the opposite of macroeconomics. In the simulation the first scenario represent microeconomics. This is due to the property management company determining the rental rate required for available two bedroom rentals decreasing vacancy to maximize revenue (University of Phoenix, 2012). This is associated to the principle of microeconomics since its application is on supply and demand. To reduce supply of vacancies...

References: Colander, D. C. (2010). Economics (8th ed.). New York, NY: McGraw-Hill.
University of Phoenix, (2012). Supply and Demand Simulation. Retrieved March 10, 2012 from: www.ecampus.phoenix.edu
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