Supply and Demand Simulation Paper Essay Example
Supply and Demand Simulation Paper
Christine Thompson
University of Phoenix
ECO365
What causes the changes in supply and demand in the simulation? An increase in population due to Lintech’s arrival caused an increase in income causing an increase in demand for detached homes which was the substitute to the two-bedroom apartments therefore causing the demand for those to decrease. With the decrease in demand for the two-bedroom apartments, supply also decreased since they decided to take a good chunk of them and convert them into condominiums and selling them. When the government imposed rental control/price-ceiling the demand increased causing a shortage.
How do shifts in supply and demand affect your decision making? When there was an increase in demand due to an increase in population, I defianetly knew that people would pay more than what the current monthly rent was so that helped me to decide on the rent increase.
List four key points from the reading assignments that were emphasized in the simulation. a. Law of supply and demand: Demand, the higher the price of a good the less amount consumers will demand and vice versa. This causes a downward slope on the demand curve. Supply, reveals the quantities that will be sold at a certain price, the higher the price the more quantity is supplied, causing an upward slope on the supply curve. b. Equilibrium concept: This occurs when the supply and demand for a good is equal. c. Movements in the supply and demand curves: Movements occur when a change in the quantity demanded/quantity supplied is only caused by a change in price. d. Shifts: Shifts occur when the quantity demanded/quantity supplied is caused by a factor other than price. Such things as income increase and preferences.
How can you apply what you learned about the concepts of supply and demand from the simulation to your workplace? I work in the housing department and it’s by job to find temporary housing for our
Christine Thompson
University of Phoenix
ECO365
What causes the changes in supply and demand in the simulation? An increase in population due to Lintech’s arrival caused an increase in income causing an increase in demand for detached homes which was the substitute to the two-bedroom apartments therefore causing the demand for those to decrease. With the decrease in demand for the two-bedroom apartments, supply also decreased since they decided to take a good chunk of them and convert them into condominiums and selling them. When the government imposed rental control/price-ceiling the demand increased causing a shortage.
How do shifts in supply and demand affect your decision making? When there was an increase in demand due to an increase in population, I defianetly knew that people would pay more than what the current monthly rent was so that helped me to decide on the rent increase.
List four key points from the reading assignments that were emphasized in the simulation. a. Law of supply and demand: Demand, the higher the price of a good the less amount consumers will demand and vice versa. This causes a downward slope on the demand curve. Supply, reveals the quantities that will be sold at a certain price, the higher the price the more quantity is supplied, causing an upward slope on the supply curve. b. Equilibrium concept: This occurs when the supply and demand for a good is equal. c. Movements in the supply and demand curves: Movements occur when a change in the quantity demanded/quantity supplied is only caused by a change in price. d. Shifts: Shifts occur when the quantity demanded/quantity supplied is caused by a factor other than price. Such things as income increase and preferences.
How can you apply what you learned about the concepts of supply and demand from the simulation to your workplace? I work in the housing department and it’s by job to find temporary housing for our