Supply And Demand Simulation Analysis
Supply and Demand Simulation
Supply and Demand Simulation The simulation for the supply and demand included management decisions involving two- bedroom rental apartments owned by GoodLife Management firm located in Atlantis. The property manager team job consisted of adjusting monthly rental rate for maximizing revenue based on quantity supplied apartments in the economy. Each scenario presented different economics factors, variables, and issues that required management decision as analyzed below. Supply and demand is a fundamental analytical concept of microeconomics stating that price determination is set when the quantity of a good or services supplied meets the quantity demanded (Colander, 2010). The idea of demand represents the general activities of wants and desires demanded by consumers, whereas supply indicates those of producers. Another concept of microeconomics determined by the point of interaction in which quantity of supply equals to quantity of demand is known as equilibrium (Colander, 2010). The law of …show more content…
According to the macroeconomics principles of monopoly GoodLife is free to raise and lower monopoly prices to maximize revenue potential as they see fit in the current market. In the beginning of the simulation because GoodLife were the only firm that supplied rental apartment the government established the macroeconomics concept of a price ceiling in the market (Marshchak, 2010). The government imposed price ceiling protected the Atlantis consumer from higher rental price above the price of equilibrium. However, a price ceiling can cause an equilibrium affect between supply and demand. For example, if the rental price was at the price ceiling and the apartment demand increase, the supply of available apartments would decrease (Marshchak,
Supply and Demand Simulation The simulation for the supply and demand included management decisions involving two- bedroom rental apartments owned by GoodLife Management firm located in Atlantis. The property manager team job consisted of adjusting monthly rental rate for maximizing revenue based on quantity supplied apartments in the economy. Each scenario presented different economics factors, variables, and issues that required management decision as analyzed below. Supply and demand is a fundamental analytical concept of microeconomics stating that price determination is set when the quantity of a good or services supplied meets the quantity demanded (Colander, 2010). The idea of demand represents the general activities of wants and desires demanded by consumers, whereas supply indicates those of producers. Another concept of microeconomics determined by the point of interaction in which quantity of supply equals to quantity of demand is known as equilibrium (Colander, 2010). The law of …show more content…
According to the macroeconomics principles of monopoly GoodLife is free to raise and lower monopoly prices to maximize revenue potential as they see fit in the current market. In the beginning of the simulation because GoodLife were the only firm that supplied rental apartment the government established the macroeconomics concept of a price ceiling in the market (Marshchak, 2010). The government imposed price ceiling protected the Atlantis consumer from higher rental price above the price of equilibrium. However, a price ceiling can cause an equilibrium affect between supply and demand. For example, if the rental price was at the price ceiling and the apartment demand increase, the supply of available apartments would decrease (Marshchak,