Essay about Microeconomics and the laws of supply d

Submitted By emalee30
Words: 589
Pages: 3
Open Document
Microeconomics and the laws of supply demand
ECO/365

Supply and Demand Simulation Since the early years of commerce, supply and demand have been a huge factor in the capitalist business system. For this assignment I was asked to take part in a simulation as a source for my paper. In the simulation I had to take part of a series of important financial decisions for a fictitious apartment management company named GoodLife and see how each decision would be impacted by different economic factors. In this simulation, I was able to see that the microeconomics concepts could be labeled in the changes of supply and demand as well as the equilibrium in the apartment market. That is because the factors would only affect a small part of the apartment market in which the company on this scenario operates. The macroeconomics concept could be labeled with the price elasticity and the price ceiling. This is because it has a broad impact bigger than the local apartment market. The simulation taught me that any shift on the supply curve or demand can impact significantly the economics status of a company. For example, if the demand curve shifts to the left, it will show me that there is a decrease in the demand of people looking for apartments and in turn will cause that less apartments be rented. When this happens it forces GoodLife to reduce their prices to make up for the income gap. This means that the equilibrium price is lower because the demand decreased even though the supply (quantity of apartments) stayed the same. Now if the curve was to the right, it will show that there is an increase in available apartments. Like for example if the company buys more buildings or they built new ones. Now if the demand stays the same, the best thing Goodlife can do is to lower rent prices to be able to fill every apartment they have vacant.
Supply demand and Curve shifts Microeconomics factors will have an important role when we look at the equilibrium price and quantity. The most important factor I saw in this scenario that determines the rental price is changes to supply and demand. This scenario gave several examples how different factors caused prices to increase and decrease. Macroeconomic factor on the other hand, can cause supply and
Show More

Related Documents: Essay about Microeconomics and the laws of supply d

Essay about Supply and Demand Curves

Supply and Demand Curves John Doe ECO/365 June 5, 2014 I.M. Professor Supply and Demand Curves Answer the following questions Write the definition for each of the following: 1. Law of Demand - A microeconomic law that states, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa. The law of demand says that the higher the price, the lower the quantity demanded, because consumers’ opportunity cost to acquire…

Words 295 - Pages 2

Essay about ECO365 Week 2 Assignment

Microeconomics and the Laws of Supply and Demand ECO/365 March 16, 2015 Sandy Bishop Microeconomics and the Laws of Supply and Demand In this paper, we will summarize the content of the Supply and Demand Simulation located on the University of Phoenix student website. The simulation takes place in a small city called Atlantis that has wide-open spaces, adequate parks and green areas, and easy access to the highway. There is plenty of outdoor activities and dotes beautiful wildlife. Housing…

Words 816 - Pages 4

Microeconomics And The Laws Of Supply And Demand

Microeconomics and the Laws of Supply and Demand XXXXXXXXX ECO/365 Microeconomics and the Laws of Supply and Demand In the world of business, flexibility is the key to success. Businesses must be able to change with the demands of the customer. Our economy is based off supply and demand of goods and services. As Colander states in our text, “Prices are the tool by which the market coordinates individuals’ desires and limits how much people demand. When goods become scarce, the market reduces…

Words 1195 - Pages 5

Supply And Demand Simulation

Supply and Demand Simulation This simulation is about a business called GoodLife Management, they are a property management company running the apartment complex’s in the city of Atlantis. The next closes rental company to GoodLife is Oakridge Builders who rent detached homes. The simulation about GoodLife Management reflects supply and demand of the rental properties over a course of seven years. Some of the key terms discussed throughout this simulation are, supply and demand, equilibrium,…

Words 908 - Pages 4

Business Organization And Behavior Of TTP Company Over The Years 2009-2010

investigate business organisation and behaviour of TTP Company over the years 2009-2010.In the following essay causes for shifts in supply and demand will be discussed as well as what impact they have on quantity, price and market equilibrium. Concept of elasticity will be described along with definitions on price elasticity of demand and price elasticity of supply. Business organization and behaviour will be described followed by discussion on costs, profit and revenue. Theories of Market Structure…

Words 2342 - Pages 10

Eco365 Week1 Essay

| Syllabus School of Business ECO/365 Version 4 Principles of Microeconomics | Copyright © 2011, 2008, 2007, 2006 by University of Phoenix. All rights reserved. Course Description This course provides students with the basic theories, concepts, terminology, and uses of microeconomics. Students learn practical applications for microeconomics in their personal and professional lives through assimilation of fundamental concepts and analysis of actual economic events. Policies Faculty…

Words 2646 - Pages 11

Practice Problem Set Essay

positive analysis, macro and microeconomics, demand and the quantity demanded. Work through the problems and applications. Review PowerPoint lectures. Review lab notes (hopefully you’ve taken some!). Review your problem sets. Review your quizzes. Review Questions Set : 1) The price of coffee increases. Ceteris parabis, this will cause: a) the demand for coffee to decrease b) the demand for coffee to increase c) the quantity of coffee demanded to increase d) the quantity of coffee demanded…

Words 1222 - Pages 5

Ebooks Solution Manuals and Test Banks for Text Books Essay

Dear all, If u need anything from the list, do contact us anytime, we provide competitive prices and fast delivery after payment done. We are assisting students by providing them quality services regarding Solutions and Test Bank for courses. We hope that you people will like our service and get better grades. Please Contact us @ : solvedanswers@gmail.com solvedanswers@gmail.com Use CTRL + F to search the titles you looking for , if the title you searching is not in the list, do not…

Words 19224 - Pages 77

Test Bank For Business In Action 7th Edition Bovee Thill Essay

Similarly, as prices decline, the quantity that sellers are willing to supply declines. Diff: 2 AACSB: Analytical thinking Chapter LO: 3 Course LO: Explain how economic performance is monitored Classification: Concept 14) The supply curve of a firm will shift to the right if technology increases the firm's production costs. Answer: FALSE Explanation: The supply curve of a firm will shift to the left if technology increases the firm's production costs. Diff: 2 AACSB:…

Words 16586 - Pages 67

Essay about ECO2302 SYLLABUS SSI 2015 Online Course COB Format 1

COURSE SYLLABUS: ECO 2302: MICROECONOMICS (Online) University of Houston-Downtown Summer I, 2015 COLLEGE OF BUSINESS INFORMATION: This course is in support of a degree program at the UHD College of Business that has earned professional accreditation by AACSB International. AACSB International is an association of more than 11,100 business educational institutions, and other organizations in 70 countries that are dedicated to the advancement of management education worldwide. Only 568 business…

Words 2784 - Pages 12