Supply And Demand Simulation Case Study
Supply and Demand Simulation
ECO/365
July 27, 2013
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In this case there were many examples of microeconomics, primarily the demand for two bedroom apartments and condominiums. The impacts and decisions that Goodlife made in response to the people’s demand is an example of microeconomics. Micro looks specifically on how a company can increase their profit to remain competitive in the market.
The changes in supply and demand when another company came into Atlantis and when the government issued a price cap for rent are example of Macroeconomics. Macro pertains to unemployment and government related issues.
The first shift that I experienced was the demand shift when changing the rental price per unit. While I lowered the rate of …show more content…
The next scenario presented an increase in demand for monthly rental unit due to a new company moving into the area. I identified correctly that the demand increases, but failed to notice that the supply does not change. In the third scenario as the rental rate decreases there is a downward shift down the supply curve. The decreased both the rental rate and the equilibrium price. The next scenario presented that there was a decrease in demand for two bedroom apartments so Goodlife converted many apartments into condominiums. I was able to correctly identify that there was a decrease in demand and a decrease in supply of the two bedroom apartments. In this scenario both the demand and supply curve shifted to the …show more content…
In the past there was a large push for work at home jobs, specifically Medical Transcription. My workplace started a program and monitored it’s enrollment. For many years this was a thriving program, however with the changes in demand in the workplace and the increased supply/opportunity to take this course online the demand for this program declined. We were able to identify this and eliminate this program as the demand decreased. We can now offer similar programs but ones that have a higher demand for the specialty and less availability in the area; such as Medical Assistant and Radiology Assistant.
The basic concepts of microeconomics help me to identify how and why there are shifts that occur. It is important to not only know that shifts are happening, but why they are happening and what changes must be made to remain a competitive organization in the market. It is important to understand the equilibrium price as it pertains to demand and supply shifts to know how to competitively market the
ECO/365
July 27, 2013
*
In this case there were many examples of microeconomics, primarily the demand for two bedroom apartments and condominiums. The impacts and decisions that Goodlife made in response to the people’s demand is an example of microeconomics. Micro looks specifically on how a company can increase their profit to remain competitive in the market.
The changes in supply and demand when another company came into Atlantis and when the government issued a price cap for rent are example of Macroeconomics. Macro pertains to unemployment and government related issues.
The first shift that I experienced was the demand shift when changing the rental price per unit. While I lowered the rate of …show more content…
The next scenario presented an increase in demand for monthly rental unit due to a new company moving into the area. I identified correctly that the demand increases, but failed to notice that the supply does not change. In the third scenario as the rental rate decreases there is a downward shift down the supply curve. The decreased both the rental rate and the equilibrium price. The next scenario presented that there was a decrease in demand for two bedroom apartments so Goodlife converted many apartments into condominiums. I was able to correctly identify that there was a decrease in demand and a decrease in supply of the two bedroom apartments. In this scenario both the demand and supply curve shifted to the …show more content…
In the past there was a large push for work at home jobs, specifically Medical Transcription. My workplace started a program and monitored it’s enrollment. For many years this was a thriving program, however with the changes in demand in the workplace and the increased supply/opportunity to take this course online the demand for this program declined. We were able to identify this and eliminate this program as the demand decreased. We can now offer similar programs but ones that have a higher demand for the specialty and less availability in the area; such as Medical Assistant and Radiology Assistant.
The basic concepts of microeconomics help me to identify how and why there are shifts that occur. It is important to not only know that shifts are happening, but why they are happening and what changes must be made to remain a competitive organization in the market. It is important to understand the equilibrium price as it pertains to demand and supply shifts to know how to competitively market the