Supply and Demand Simulation

Topics: Supply and demand, Macroeconomics, Economics Pages: 1 (719 words) Published: November 2, 2014
Supply and Demand Simulation Supply and Demand Simulation There is a wealth of opportunity in the rental market and with one company to supply rental apartments in the city of Atlantis they are bound to make a lot of money. The key is to apply the laws of supply and demand to the business so that is can be as profitable as possible. Two Microeconomic and Macroeconomic Principles or Concepts When you are studying macroeconomics you are looking at the economy for an entire country. According to Colander (2010), It considers the problems of inflation, unemployment, business cycles, and growth (p. 15). There are good examples in the fourth and seventh scenarios about macroeconomics. The population in the fourth scenario is getting bigger in the town and with the new corporation coming and along with the new business comes a lot of new employees also. Growth will take place in Atlantis and the unemployment rate will go down. In the seventh scenario it shows that if demands go up then prices will also go up. The government step in and put a price ceiling on rental prices because a lot of families we not about to the higher rent. Supply and Demand Curve Shifts Scenario one the rental rate goes down causing the demand curve to shift down too. With more units rented out the vacancy rate has gone down also. With lower equilibrium prices shows how to handle the surplus. In scenario two a zero vacancy rate is achieved when the supply curve shifts up because the rental rates are up. This tends to lean in the favor of a shortage because the market has run out of apartments, which leads to a higher equilibrium price. My Workplace In the warehouse distribution industry, when there is more supply than demand, you have to lower your cost of products so that you do not have an abundance of inventory, if you keep too much inventory sitting on your shelves then you are eventually going to run out of space. You would like that you inventory to be sold and just keep ample amounts of...
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