University of Phoenix
Supply and Demand Simulation
Principles of Microeconomics
The simulation shows a number of changes that happen to the Atlantis population, as well as to the supply and demand of the apartment housing. Throughout the simulation there are two microeconomic principles being displayed as well as one macroeconomic. The equilibrium price is fluctuated due to shifts that take place within the supply curve and also the demand curve. Just like this virtual simulation on the website, there's plenty of changes that can take place in a work environment that can affect the supply or demand. These types of changes create fluctuations in both the equilibrium quantity and the price within a realistic work environment. While I looked at and went through the simulation, it became easy to see how the price elasticity of demand greatly affected both the firms strategy with pricing and the customer's own personal decision to purchase. It's clear that there are principles of macroeconomics and microeconomics in the simulation. A couple examples of microeconomics would be how the Goodlife Company and individuals made their choices based off of regulation and scarcity. While an example of macroeconomics would be the change that the government made that applies to a price limit on apartment housing for the Goodlife Company. Governments regulation of the price ceiling would always classify as macroeconomics simply because it has a bunching effect on the whole overall local economy. So an individual's own consumer choices leads to increases and decreases in demand that can then allow the company to respond. Then the company alters or modifies its pricing so that it can gain equilibrium as a reaction to the demand of the consumer. However, this doesn't always work out whenever government sets regulations on the price of a product. At the start of the simulation the company lowered rates to 1,050...
References: Colander, D. (2010).Economics (8th ed.). New York, NY: McGraw-Hill.
University of Phoenix.(unk.).Applying Supply and Demand Concepts. Retrieved from ecampus.phoenix.edu: https://ecampus.phoenix.edu/secure/aapd/vendors/tata/UBAMsims/economics1/supply_demand/economics1_supply_demand_frame.html
Moffatt, M. Price elasticity of demand. Retrieved from http://economics.about.com/cs/micfrohelp/a/priceelasticity.htm
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