Applying Supply and Demand Concepts - 1027 Words

Applying Supply and Demand Concepts David Hodge ECO 365 April 29, 2013 Robert Watson Applying Supply and Demand Concepts The supply and demand simulation was a very helpful tool in understanding the effects of external factors on the supply and demand curves. Understanding this concept is fundamental in preparing for real life situations. I personally enjoyed the fact that the simulation was based on a real estate management company. I was able to understand and relate to the information given. There are a series of questions that will be answered and the topic of this paper will cover different concepts of micro and macroeconomics including; shifts in the supply and demand curves and its effect on the equilibrium price,†¦show more content†¦* Supply and demand is based on a certain level of market competition. The shifts of these curves are an attempt to find a common ground between businesses and their consumers. They strive to find a price to which the consumers would be willing to spend their money and at a level of which the company would be will ing to sell their products. Once this level is reached equilibrium of price and quantity demanded is created and they no longer push against each other, both parties are happy. * * How do the concepts of macroeconomics help you understand the factors that affect shifts * in supply and demand on the equilibrium price and quantity? * The concepts of macroeconomics help me understand that there are external factors that will affect the end users. For an example, in the simulation, the consumer’s decision making process will be altered based on the property management’s decision to convert some of their apartments to condos. Also, the increase in population and the government mandates will have the effects as well. * * * * Relating to the simulation, explain how the price elasticity of demand affects a consumer’s * purchasing and the firm’s pricing strategy. According to the text, â€Å"price elasticity is the percentage change in quantity divided by the percentage change in price. (Colander, 2010)† Basically, what this aims to define is the responsiveness of their consumers to price change. This calculationShow MoreRelatedApplying Supply and Demand Concepts Eco 4151119 Words   |  5 PagesApplying supply and demand concepts The demand curve is downward sloping, and that quantity demanded increases as the price decreases that are as you move down the demand curve. GoodLife could increase the quantity demand of its rented apartments only by reducing the rental rate. The supply curve is upward sloping, and quantity supplied increase with an increase in price- that is, as you move up the supply curve. An increase in rental rate would cause GoodLife to lease out more apartments. DemandRead MoreSupply and Demand Simulation983 Words   |  4 Pages   ECO365 Supply and Demand Simulation Student Name ECO/365 – Principles of Microeconomics Instructor Name Date Introduction Supply and Demand is a phrase that every one hears in one way or another, Supply and demand phrase according to Colander, (2010) is the most used phrase by economist and the reason is because the phrase provides a good â€Å"off-the-cuff† answer for many question that have to do with economy. Example why are interest rates to Low? Because supply and demand. Why is GasolineRead MoreSupply and Demand Simulation1060 Words   |  5 PagesSupply and Demand Simulation ï ¿ ½ PAGE * MERGEFORMAT ï ¿ ½1ï ¿ ½ Supply and Demand Simulation University of Phoenix ECO/365: Principles of Microeconomics October 26, 2009 ï ¿ ½ Supply and Demand Simulation IN THE UNIVERSITY OF PHOENIX SIMULATION (2003), APPLYING SUPPLY AND DEMAND CONCEPTS, A SITUATION IS PRESENTED CONCERNING THE SUPPLY AND DEMAND OF TWO-BEDROOM RENTAL APARTMENTS IN ATLANTIS. THROUGHOUT THE SIMULATION SCENARIOS ARE PRESENTED AND CHOICES MUST BE MADE REGARDING FACTORS THAT AFFECT DEMANDRead MoreEssay Supply And Demand Simulation1318 Words   |  6 PagesIntroduction The Supply and Demand simulation involves acting as Property Manager for GoodLife Management, a property management firm that manages apartment complexes in Atlantis. This simulation was an exercise in applying the supply and demand concepts based on current market trends. The property manager is required to adjust the monthly rental rate of two-bedroom rental apartments and number of apartments available. Supply and demand within the simulation were manipulated by the rates chargedRead MoreSupply and Demand Simulation Essay1024 Words   |  5 PagesSupply and Demand Simulation Supply and demand plays an intricate role in the amount, price, and availability of products and services. The applying supply and demand concepts simulation guides users through making decisions for Goodlife, a management company for 2 bedroom apartments in Atlantis. The simulation names the user the property manager; responsible for vacation residents, new pricing for units, and advertising. The property manager makes decisions in circumstances including the changingRead MoreEco/365 Essay example628 Words   |  3 PagesSupply and Demand simulation LaKeith A. Atkins Sr. ECO/365 February 28, 2013 Watson Ragin Supply and Demand simulation †¢ Identify two microeconomics and two macroeconomics principles or concepts from the simulation. Explain why you have categorized these principles or concepts as macroeconomic or microeconomic. Supply and demand was affected by decreasing the rent to lower the vacancy percentage and maximize revenue for the company. This process is considered a temporary fix on a month-to-monthRead MoreBasic Concepts: Supply and Demand Simulation1664 Words   |  7 PagesBasic Concepts ECO/415 – Applied Economics in Business December 20, 2010 Basic Concepts: Supply and Demand Simulation Goodlife, a property management firm, located in Atlantis is responsible for the management of 2000 apartments. Their primary goal is to maintain equilibrium in the two-bedroom rental market. They are the only management firm operating in a monopoly market within Atlantis. The management team, consisting of Susan Hearst and Hal Morgan, is responsible for maintainingRead MoreSupply and Demand Simulation Essay694 Words   |  3 PagesSupply and Demand Simulation This weeks simulation is based on GoodLife Management. GoodLife Management is located in the fictitious town of Atlantis, and rents two-bedroom apartments on a month-to-month basis. The simulation provided working examples of several factors that effectively change the supply and demand of GoodLifes rentals over the course of several years. These factors include GoodLifes management direction, population changes within Atlantis and outlying areas, changes in consumersRead MoreLean Supply Chain Is A Catalyst For Enhancing Product Quality And Business Performance1375 Words   |  6 Pagescompetitive (Cudney Elrod, 2011). Applying lean concepts goes beyond having a better product than competitors; it’s the supply chains ability to create end-to-end value for the organization and customer. Therefore, for the supply chain to provide organizational success collaboration with all users is critical because effective communication can clearly address expectations and align everyon e to work towards a joint goal for mutual success (Jasti Kodali, 2015). Lean supply chain is a catalyst for enhancingRead MoreApplying Lean Tools and Techniques to Optimize Supply Chain Processes1139 Words   |  5 PagesApplying Lean Tools and Techniques To Optimize Supply Chain Processes Introduction In defining how best to apply lean tools and techniques to the optimization of supply chain processes, the systemic structure of a firms value chain needs to first be taken into account, with each specific sector of the supply chain considered an integral part. Of the many excellent insights gained from the study of Lean Logistics (Jones, Hines, Rich, 1997) one of the most significant is how the planning and execution