Supply And Demand Simulation Research Paper
Supply and Demand Simulation
ECO/365
August 12, 2013
Supply and Demand Simulation In this paper I will discuss and identify two microeconomics and two macroeconomics principles or concepts from the simulation. I will explain why I have categorized these principles or concepts as macroeconomic or microeconomic. I will also identify at least one shift of the supply curve and one shift of the demand curve in the simulation, and what causes the shifts. I will discuss how each shift, and analyze how it would affect the equilibrium price, quantity, and decision making.
Two microeconomics and two macroeconomics principles or concepts
Microeconomic theory considers economic reasoning from the viewpoint of individuals and …show more content…
In the fourth scenario the population is going to increase due to a new corporation is moving into town and all their employees. This would affect all of Atlantis by increasing the population, lower the unemployment rate by creating new jobs, and growth in many other sectors will take place primarily in real estate since everyone will need places to live. In response to the growth Good Life’s apartment rates will increase from $1150 to $1400 due to the higher demand. As the demand for apartments goes up the prices go up as well, but eventually as shown in the seventh scenario some families could not afford the high rent prices so the government stepped in and put a ceiling rental …show more content…
The change to the supply curve would normally cause a shortage in supply and demand would increase, therefore allowing GoodLife to raise their prices. The decrease in demand without change to supply would decrease prices because of the surplus of supply. However, because demand and supply decreased due to the change in preference and a loss of rental units, both curves moved toward the right. This moves means that the demand decreased as well as the supply, and to keep the equilibrium of the rental properties, GoodLife would have to decease their prices in order to keep consumers renting apartments instead of buying
ECO/365
August 12, 2013
Supply and Demand Simulation In this paper I will discuss and identify two microeconomics and two macroeconomics principles or concepts from the simulation. I will explain why I have categorized these principles or concepts as macroeconomic or microeconomic. I will also identify at least one shift of the supply curve and one shift of the demand curve in the simulation, and what causes the shifts. I will discuss how each shift, and analyze how it would affect the equilibrium price, quantity, and decision making.
Two microeconomics and two macroeconomics principles or concepts
Microeconomic theory considers economic reasoning from the viewpoint of individuals and …show more content…
In the fourth scenario the population is going to increase due to a new corporation is moving into town and all their employees. This would affect all of Atlantis by increasing the population, lower the unemployment rate by creating new jobs, and growth in many other sectors will take place primarily in real estate since everyone will need places to live. In response to the growth Good Life’s apartment rates will increase from $1150 to $1400 due to the higher demand. As the demand for apartments goes up the prices go up as well, but eventually as shown in the seventh scenario some families could not afford the high rent prices so the government stepped in and put a ceiling rental …show more content…
The change to the supply curve would normally cause a shortage in supply and demand would increase, therefore allowing GoodLife to raise their prices. The decrease in demand without change to supply would decrease prices because of the surplus of supply. However, because demand and supply decreased due to the change in preference and a loss of rental units, both curves moved toward the right. This moves means that the demand decreased as well as the supply, and to keep the equilibrium of the rental properties, GoodLife would have to decease their prices in order to keep consumers renting apartments instead of buying