Eco 365 Week 2 Supply And Demand Simulation
Supply and Demand Simulation
Michael Roach
ECO/365
March 17, 2014
Tim Randolph
Supply and Demand Simulation
This simulation of “Applying Supply and Demand Concepts” gave me a true understanding of how things work in the market place. We go through life dealing with these situations, but not knowing how they really affect us and the world around us. I had some ideas of how these principles worked, but was I taken for a loop when I tried to balance out the equations. This is what I learned from this simulation and how it applied to real-world occurrences.
Two Macroeconomic and Microeconomic Principles
The two principles that I found that related to the simulation for microeconomics were supply and demand, and scarcity. These two principles both have a direct effect on what a people will do, on a personal level, when it comes to their economic decisions. The simulation showed what would happen if more positions became available and people came to fill those positions. This caused a scarcity of living spaces which in turn caused a shift in the supply and demand curve. When looking at two principles that are related to the simulation for macroeconomics, I found that the use of government restrictions on rental prices and economic growth had the most effect. These two items had a greater external influence on population growth than what …show more content…
What I have learned from the simulation is that the government can come in and adversely affect prices by putting a ceiling on what the market can charge. It also can cause companies to change their formats in order to adjust to these changes, like from apartments to condos. This way, the government can meet the demands of the population by limiting the cost that the companies can charge consumers, and opening up areas where new jobs can open and
Michael Roach
ECO/365
March 17, 2014
Tim Randolph
Supply and Demand Simulation
This simulation of “Applying Supply and Demand Concepts” gave me a true understanding of how things work in the market place. We go through life dealing with these situations, but not knowing how they really affect us and the world around us. I had some ideas of how these principles worked, but was I taken for a loop when I tried to balance out the equations. This is what I learned from this simulation and how it applied to real-world occurrences.
Two Macroeconomic and Microeconomic Principles
The two principles that I found that related to the simulation for microeconomics were supply and demand, and scarcity. These two principles both have a direct effect on what a people will do, on a personal level, when it comes to their economic decisions. The simulation showed what would happen if more positions became available and people came to fill those positions. This caused a scarcity of living spaces which in turn caused a shift in the supply and demand curve. When looking at two principles that are related to the simulation for macroeconomics, I found that the use of government restrictions on rental prices and economic growth had the most effect. These two items had a greater external influence on population growth than what …show more content…
What I have learned from the simulation is that the government can come in and adversely affect prices by putting a ceiling on what the market can charge. It also can cause companies to change their formats in order to adjust to these changes, like from apartments to condos. This way, the government can meet the demands of the population by limiting the cost that the companies can charge consumers, and opening up areas where new jobs can open and