Supply and Demand Simulation
A simulation was conducted to understand supply and demand when renting out apartment homes. This paper will briefly explain two microeconomics and two macroeconomics principles, it will include one shift of the supply curve and demand curve in the simulation. For each of the shifts the affect of the equilibrium price, quantity, and decision making will be analyzed. A description of supply and demand from the simulation and how to apply it in the workplace is included. Concepts of macroeconomics will be explained, and how understanding the factors that affect shifts in supply, and demand on the equilibrium price. In addition an explanation of how price elasticity of demand affects a consumer’s purchasing and firms pricing strategy will be included. Microeconomics and Macroeconomics
In the simulation two microeconomics principles are to study the decisions that one as a manager makes, including the business that regarded the allocation of the resources and the prices of apartment homes in this case. In the simulation there is a specific company that had to maximize the production and the capacity so that the apartment homes would lower in prices and compete with other apartment homes. With microeconomics the study of the individuals and the business decisions in the simulation are studied. In the simulation macroeconomics is used as well, the behavior of the economy as a whole. The industries and economies, the changes that occur depending on the decrease increase on the unemployment rate. Although macroeconomics and microeconomics are two different studies in the simulation, they complemented one another. In the simulation microeconomics took the opposite approach from macroeconomics that is the top-down approach vise the bottoms-up approach. Understanding that both are working together is very important at a workplace. Different situations come up and know the differences, and the things between microeconomics and...
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