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Basic Concepts Paper


Submitted By hazelbrook
Words 1740
Pages 7
Basic Concepts
Kathy D. Hardy
December 8, 2011
Dr. Robert Mupier

In this paper the subject to discuss is the supply and demand from the simulation located on the University of Phoenix Student Website. There are several questions that will be answered and discussed such as how the changes in the business environment cause changes in supply and demand, why marginal analysis is important when making business decision, fixed and variable costs, and economic difficulties operating companies face. The subject of this paper will also give examples to these questions as they relate to the simulation to complete the knowledge of basic concepts in applied economics.

Basic Concepts The supply and demand concept located in the simulation is key dynamics and basic concepts in applied economics. The main objective of this simulation is for Good Life Management to keep the equilibrium point in the two-bedroom rental apartment market in the city of Atlantis. Customer likes and preference, cost, and the level of the residents have the effect on the demand. The numbers of apartments, the quantity of apartments available and the quantity of apartments rented have the effect on the supply. Additionally, a variety of concerns should be taken into consideration such as the shift in supply and demand, and the process the shift in supply and demand has on the business environment. Furthermore, Management should think about the significance of the marginal analysis with decision-making, appropriate output levels, and the costs associated to the business and marketing efforts. For management to prevail over the economic barriers, the business needs to examine supply and availability of company merchandise and the demands of customers in a specified market sector.
How do changes in the business environment cause changes in supply and demand?

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