Supply and Demand Simulation

In: Business and Management

Submitted By nikkielliott1104
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Supply and Demand Simulation
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Supply and Demand Simulation
The supply and demand simulation is based on an apartment management company which is located in Atlantis and how various economic factors impact it. The supply and demand concept is very important and critical in microeconomics as well as macroeconomics. The microeconomics concept is classified within the changes of the equilibrium and the supply and demand concept in which the apartment community operates within. While in the macroeconomics concept it is classified as price ceilings and elasticity, which shows that there is a large impact on the overall apartment market locally. The supply curve and demand curve showed that there could be a significant change within the economic environment if there were to be any changes within them.
Examples of what any shift or change to the supply curve and demand curve have very different results depending on the shift. If the supply curve shifted to the right, it would result in an increase in apartments available for renting. If the apartment management company could accomplish this by expanding the apartment buildings to allow for more units to be occupied. If the demand curve shifted to the left this would indicate a decrease in the demand of its consumers and result in fewer apartments being occupied. The management company faced this in the simulation and caused for them to lower the prices to compensate for the widespread desire for property ownership. Since the demand decreased it caused for the equilibrium price to become lower, although this lowered the supply and demand did not change. To obtain a higher occupancy, if there was not a change in demand it would be smart to lower prices.
It is very important for the company to pay attention to economic factors and make decision based on those factors. This will ultimately benefit the…...

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