# Identify Two Microeconomics and Two Macroeconomics

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• 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.

o Microeconomics Principals: Scenario 1: In one of the first scenarios it talks about decreasing the rent to lower the vacancy percentage and maximize revenue for the company putting the focus on supply and demand. This would be a temporary fix on a month-to-month basis. o Microeconomics Principals: Scenario 4: Here the company is talking about a new company coming to town and increase the population along with jobs, and suggest they increase rental rates in response to the increase in demand. Not only would this apply to vacant apartments but to the renewal of leases as well. o Macroeconomics Principals: Scenario 3; in this scenario it brings up Atlantis Housing Survey statistics on a demand as a whole. It showed that individuals working in Atlantis are living in neighboring cities due to the rent being less. o Macroeconomics Principals: Scenario 7: The government steps in and puts a ceiling of \$1550 on monthly rent for 2 bedroom apartments so that middle class families can afford to live in the city in which they work in. So the company decides to rent only a portion of their apartment’s in order to make a profit due to maintenance cost and so forth.

• Identify at least one shift of the supply curve and one shift of the demand curve in the simulation. What causes the shifts?

o A shift in the Supply curve per the stimulation would be like a change in expectation can cause the supply of the two-bedroom apartments to decrease. The supply curve is upward sloping, and quantity supplied increases with an increase in price moves up the supply curve allowing the company to increase the rental rate allowing them to lease out more apartments. o A shift in the Demand...

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