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Eco 360 Week 2 Simulation Paper

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Submitted By rachelmarie0614
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Supply and Demand Simulation
ECO/365

The simulation addressed many factors including supply and demand in the big picture of both microeconomics and macroeconomics. GoodLife Management is a company that manages rental complexes and has a monopoly of sorts in that it is the only company that rents at seven certain complexes. As Lintech, a new company moves to Atlantis an increase in the demand for housing causes some change in both prices and supply.
A good example of one principle of microeconomics in the simulation is the concept of reaching equilibrium, where supply and demand (opposing forces) cancel each other out (Colander, 2010). When Lintech moves to Atlantis there is a sharp increase in which a surplus on the market caused a downward pressure on the price. At that time there was no shortage or surplus because equilibrium was reached.
Another principle that demonstrates microeconomics is that of opportunity costs. During the simulation Lintech, a large company moves in to Atlantis which causes the demand for rentals to increase. Opportunity cost is essentially what you give up to attain what you desire (Colander, 2010). The concept of employees of Lintech needing to travel to and from Atlantis and giving up other things in order to either accommodate the travel time and expense or accommodate moving to the city of Atlantis to be closer to work brings to mind opportunity cost.
A principle of macroeconomics that is shown in the simulation is when the government imposes the price ceiling. This is because macroeconomics involves the study of economy as a whole and more so focuses on looking from the top down whereas microeconomics focuses from the study of individual choice (Colander, 2010). A price ceiling is imposed on rent because the quality supplied is less than the quantity demanded. Another principle of macroeconomics that is shown in the

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