...Supply and Demand Simulation Leticia Shamma ECO/365 July 24, 2013 Karl Bitter Supply and Demand Simulation The Supply and Demand Simulation was very insightful. I related to it since I am in property management although I did have some difficulty with the reasoning. The simulation was designed to help us understand demand and supply as well as the effect of a price ceiling on a specific quantity as well as the quantity supplied. According to our textbook, Microeconomics is the study of individual choice and how that choice can be influenced by economic forces. In this simulation, the city of Atlantis has a property management company by the name of Goodlife Management who is responsible for leasing two bedroom apartment homes that are in high demand. The two microeconomics principles are the supply of the two-bedroom apartments and the demand for renting them. Macroeconomics is the study of the economy as a whole. It considers the problems of inflation, unemployment, business cycles, and growth. The macroeconomic principles that are a factor is the increase in the population and growth of the city that has caused an increase in the demand of the apartments. The increase of the population had to deal with the economy because of a new business opening up and therefore creating job opportunities. Since the city of Atlantis ‘employment rate is rising the demand for the apartments will increase and decrease as is the concept of macroeconomics. The simulation accurately details...
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...in supply in the simulation? | Movements along the supply curve: quantity supplied increased when rental rates increased. Good.Shifts: A change in expectations of the number of apartments available caused a shift to the left (decrease) because apartments were expected to be converted to condominiums for sale. Good. | What caused changes (please indicate if the changes are movements along or shifts) in demand in the simulation? | Movements along the demand curve: quantity demanded increased when rental rates decreased. Good.Shifts: A change in population of Atlantis caused a demand shift to the right (increase). Also, a change in preference for detached homes causes a demand shift to the left (decrease) Perfect. | Key point #1 emphasized in the simulation | By decreasing the rental rate, GoodLife increased demand and rented more apartments (leaving 100 surplus) while maximizing revenue. If GoodLife wanted 0% vacancies, they would need to reduce the rental rate further and also accept less revenue. Good. | Key point #2 emphasized in the simulation | As the number of rented apartments increased the higher cost to maintain; therefore, for GoodLife to increase supply they could not keep the rental rate at the current rate but needed to increase the rate. Good. | Key point #3 emphasized in the simulation | To achieve a balance of quantity demanded and quantity supplied, GoodLife needed to find the equilibrium. As rental rates decreased, demand increased and supply decreased...
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...Sarbanes-Oxley Act (SOX-Act) of 2002 Article LAW 421 May 02, 2013 Mr. Mark Reed Sarbanes-Oxley Act (SOX-Act) of 2002 Article In this report, we will discuss about a couple of healthcare whistleblowers, who had to endure harassment and unjust treatment after disclosing some wrong doings in their place of employment. We will also discuss how this act protects whistleblowers and the penalties involved for those who are found in violation of the Sarbanes-Oxley Act. ARTICLE SYNOPSIS This particular case started with two brave Texan nurses where they had blown the whistle on one of their doctors, Dr. Rolando G. Arafiles Jr., formerly from the Winkler County Memorial Hospital in Kermit, Texas, who had misused information and had retaliated against the two nurses that eventually ended their career as nurses. The nurses had witnessed unsafe and dangerous practices at their hospital and sent an anonymous letter to the state medical board. Dr. Arafiles, in response, vise making an effort to fix the problem, an array of people from the doctor, the hospital administrator, the county sheriff including the county prosecutor bonded together to discredit and harass the nurses. Despite of all these retaliation that they were continually getting from these people, the two nurses, Anne Mitchell and Vicki Galle stood firm and strong (Danaher, 2011). After two hard years of court proceedings, in January of 2010, Dr. Arafiles, along with his cohorts, were found guilty of retaliation...
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...Supply and Demand Simulation ECO/365 Supply and Demand Simulation The supply and demand simulation included both microeconomics and macroeconomics concepts. The simulation focused on a property management firm, GoodLife Management, and its ability to adjust the levels of supply and demand of two-bedroom apartments in the Atlantis community. GoodLife Management was challenged with changes in population, tastes, income, and a price ceiling. As a result of these factors the firm had to strategize about shifts in the changes in supply and demand and determine the equilibrium price and quantity. The microeconomic principles from the simulation include the supply and demand of two-bedroom apartments and the affects of price. The simulation provided exercises on how to determine the number of apartments supplied, the population that demanded the apartments, and the appropriate price per unit at a given time considering market conditions. Microeconomics looks at the smaller picture and focuses on how individuals and firms make decisions based on economic forces. GoodLife Management had to consider how many apartments to supply and the price levels to charge for them to maximize profit (University of Phoenix, 2011, Week Two Simulation). Macroeconomics views the aggregate economy in terms of unemployment, growth, business cycles, and inflation. In the simulation, two macroeconomic concepts considered are the population growth in Atlantis and business cycles. GoodLife...
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...(Individual Assignment Week 2) ECO/365 12/09/13 Atlantis is a nice city that’s is well maintained and booming with young professionals and families alike. Good Life Management is the premier choice for tenants seeking two bedroom apartments and also is the only choice. Often times in the real estate rental industry rental apartments experience a higher degree of vacancy and Good Life is looking to reduce the vacancy rate from 28% to 15%. Lowering the amount of available units was no easy task for Good Life management and likely would not have been achieved with a solid understand of the principles of the micro and macroeconomics and the supply and demand curve. This simulation has taught the importance of economics and how the play an important part of everyday life. Micro and macroeconomics play a key role in the everyday lives of people and corporations. In the simulation in this weeks assignment Atlantis is a prime example of just how often people come into contact with situations with two important factors of economics. The two important factors are supply and demand and they affect everything that we as people do in everyday life. Understanding supply and demands makes consumers, the supplier and us, determine when it is best to buy and best to sell. Understand this principle enables us to make more informed purchasing and selling decisions. There are a number of real world examples of how micro and macroeconomic...
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...* * * * * * * * * * Supply & Demand Simulation * Anthony Ford Jr. * ECO-365 * APRIL 14th, 2014 Joe Krupka * * * * * * * * * * Introduction Microeconomics involves the study of individual economic agents and individual markets. Macroeconomics involves the study of economic aggregates. Supply and demand is the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price. The concepts were well displayed during the supply and demand simulation. For example, the competition that Oakridge Builders provided was a microeconomic concept. The same can be said for GoodLife having a monopoly on selling apartments. Economic competition takes place in markets--meeting grounds of intending suppliers and buyers. Typically, a few sellers compete to attract favorable offers from prospective buyers. This is why it is a microeconomic concept. * A monopoly is an enterprise that is the only seller of a good or service. In the absence of government intervention, a monopoly is free to set any price it chooses and will usually set the price that yields the largest possible profit. Just being a monopoly need not make an enterprise more profitable than other enterprises that face competition: the market may be so small that it barely supports one enterprise (University of Phoenix, 2010). * A price ceiling is a legally...
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...Law of Supply and Demand Microeconomics and the Law of Supply and Demand ECO/365 February 12, 2012 Supply and Demand Simulation This week our facilitator assigned each student to participate in an economics simulation that allowed us to be in control over a property management company, named Good Life Management. In this simulation the student was able to use experimental economics and natural experiments. Atlantis is the city in which Good Life Management operates their seven apartment complexes. Atlantis is also a very desirable place to live, and keeps prices competitive. The simulation changed the economic, social, and political factors, and left the student to determine the correct market price to list the apartments. According to Colander, D. (2010) “Theories, models, and principles must be combined with knowledge of real-world economic institutions to arrive at specific policy recommendations”. Microeconomic and Microeconomics In this simulation there were many examples of how micro and macro economics influenced supply and demand. According to Colander, (2010) “Microeconomics is the study of how individuals choice is influenced by economic forces”. In the first simulation Good Life Management had 2,000 two-bedroom apartments with 28% vacancy rate. At this point the simulations recommendation is to lower the rent amount in order to get 15% vacancy which would maximize revenue for Good Life Management firm. In the simulation a new...
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...Michael Kennedy Supply and Demand Simulation ECO/365 University of Phoenix March 4, 2014 Supply and Demand Simulation Supply and demand is a very important part of business. However a large supply with no demand is not a good thing. There must be balance between the two so that neither the supplier nor the customer has to suffer. This balance point for these two is where businesses get their equilibrium price. The equilibrium price is the price toward which the invisible hand drives the market (Colander, D. C. (2010). In the simulation, the first of the scenarios has to do with lower the vacancy rate. This can be related to the unemployment rate of a country. In order to lower the vacancy rate the company had to lower the prices for the apartments. By doing this GoodLife has made a supply of housing. To lower the unemployment rate there would have to be larger supply of jobs. One of the microeconomic concepts is a monopoly. A monopoly is a market structure in which one firm makes up the entire market (Colander, D. C. (2010). In the case, the apartment company GoodLife is the only provider of apartments to the resident of Atlantis. The other microeconomic concept has to do with the supply and demand. In the simulation an organization, Lintech Inc, move into Atlantis creating a demand for housing. In order for GoodLife to keep up with this increase in demand, the company had to raise the prices for its apartments. GoodLife did not increase its supply of apartments, so...
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...Laws of Supply and Demand In this paper we will be discussing the law of supply and demand. First of all, what is demand curve? Demand curve is the graphical representation of demand that shows the quantities consumers are able and willing to buy at various prices. A normal demand curve is downward sloping in accordance with the law of demand. Supply curve is also a graphical representation of supply that shows the quantities producers are able and willing to sell at various prices. A normal supply curve is upward sloping in accordance with the law of supply. Equilibrium is a state of balance where dynamic forces have canceled each other out and there is no tendency for change. The laws of supply and demand are the ones that determine our economy today. During the simulation it showed that the numbers affect dramatically towards the economy. “ For example, if the demand curve shifted to the left, it would show a decrease in demand from consumers and cause fewer apartments to be filled.” (Supply and demand Simulation, Linda R, July 21,2014) In this situation what happened is that due to a widespread desire of having property ownership and been forced from the management company to lower their prices for them to compensate. Equilibrium price becomes lower because the demand decreased, while the supply and the quantity remained the same. “If the supply curve were to shift to the right, it would indicate an increase in available apartments rent.” (Supply and demand Simulation...
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...Supply and Demand Simulation ECO 365 May 14, 2012 Supply and Demand Simulation With my simulation, I chose to have a vacancy rate of 5 % which maximized revenues at $ 1.81 million. When facing a falling or rising demand, I aimed for equilibrium price as determined by the intersection of both the supply and demand curves. When a price ceiling was implemented, I could only supply a limited number of apartments at the predetermined price. The market forces of demand and supply are the best way to determine optimal prices for both producers and consumers. There are several factors that cause changes in supply and demand. One significant factor is price increases or decreases. In this particular simulation, incremental decreases in rental prices caused a significant increase in the demand for houses. Similarly, an increase in price of two bedroom apartments caused the demand for houses to increase significantly. Suppliers were naturally willing to supply more homes at increased prices but fewer when rents were reduced. As the population of Atlantis began to rise from the expansion of tech companies and the like, the demand for housing grew significantly. This caused rental prices to rise as demand began to outweigh supply. Consequentially, suppliers became eager to offer a greater supply of units at a lower rental cost. These basic laws of supply and demand as well as the determining pricing factors are examples of microeconomics at play. Consumer preferences and...
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...Supply and Demand Simulation Andrea Nelson ECO/365 May 12. 2014 Vilma Vallillee Supply and demand simulation From the University of Phoenix supply and demand simulation I identified a few microeconomic and macroeconomic principles. Monopoly and Maximizing revenue are two microeconomic concepts. Colander (2010) explains that microeconomics is “the study of individual choice, and how that choice is influenced by economic factors (p. 15)”. Economic factors and the market influence both of them. Macroeconomics, on the other hand, is “the study of the economy as a whole (p. 15)”. Equilibrium and supply and demand models fit in this category because they are affected by many different factors, but can only be understood as a whole. During the simulation, a shift on the demand occurs when a new company opened its doors in town. This brought more people to move to Atlantis and cause the demand curve to move to the right as an increase in the demand of apartments occur. The simulation explains that the demand curve is an imaginary line at a point in time that tells the quantity demanded at various prices. This curve has a downward slope because at a lower price, more quantity of a product is demanded. Before the shift of the demand occurs, the equilibrium on the demand and supply is 2100 apartments at a rental rate of $1150. When the shift of the demand occurs, a temporary shortage of apartments occurs, exerting an upward pressure on the price along the supply curve. As the...
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...Supply and Demand Simulation Thomas Alejandro ECO/365 February 17, 2014 Mubarak Laminu Supply and Demand Simulation The supply and demand simulation is based on the management of rental apartments by GoodLife Management in the fictional town of Atlantis. Atlantis is a small city with open spaces, low population, and a low crime rate. There are plenty of sidewalks and street systems for easy access to the highway. The housing in Atlantis is detached homes and apartments. At the beginning of the simulation GoodLife had 2,000 two-bedroom rental apartments and is required to decrease the monthly vacancy from 28% to at least 15% to increase revenue. GoodLife has to find what rental rate to input so all expenses are covered. There are many changes to the simulation that affect supply and demand. There are also shifts in the supply and demand that affect the decisions made by GoodLife. Four key points emphasized in the simulation are; supply and demand, equilibrium, shifts in the supply and demand, and price ceilings. The concepts in the simulation can be related to the workplace of the author of this paper. Factors that affect supply and demand in the simulation are driven by the number of available two-bedroom rental apartments, the demand for the rentals, the number of available renters, and the price. According to the simulation, a demand curve is downward sloping, and as the price decreases, demand increases. The supply curve is the opposite of the demand curve...
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...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...
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...Microeconomics and the Laws of Supply and Demand ECO/365 – Principles of Microeconomics 3/23/2015 Instructor: Microeconomics and the Laws of Supply and Demand The Supply and Demand simulation was to act as GoodLife Management property manager for a fictional town, Atlantis. This company manages about seven apartment complexes in the town of Atlantis. In this simulation the property manager was in charge in adjusting the monthly rental rate of GoodLife’s two-bed rental apartments as well as the quantity of apartments supplied based on the market trend. Many factors, such as personal preferences, income, economy, and rental rates influence the supply and demand for apartments. The ratio of vacant and occupied apartments is affected by each of these factors. A carful evaluation is vital when making decisions about supply, demand, and price, as well as a regular monitoring in order to remain competitive in the rental market. The first simulation had the objective of determining the two-bedroom apartments’ monthly rental rate for on provisional leases. Therefore, the rate for vacancy should be decreased to at least less than 15%, while the revenue should be maximized. When the rental rate of the apartments decreased and the demand increased, the vacancy rate decreased as a result. The simulation showed that as the rental rate is lowered the initial revenue increased, and reaching a maximum point at a specific rental rate. This then made the demand decrease. The solution is to...
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...and the Laws of Supply and Demand ECO/365 Microeconomics and the Laws of Supply and Demand Introduction Supply and demand dictates business and determines if a business is going to be successful or not. It is also a key part of the microeconomic and macroeconomic settings in a company. This week’s simulation showed how an apartment company in the city of Atlantis is affected by the business decisions of the company and the economic factors that are going on around them. The microeconomic concepts that can be pulled from the simulation are the changes in the supply and demand of their two bedroom apartments which the company is trying to adjust. The macroeconomic concepts that can be pulled from the simulation are the price elasticity and the price ceiling that the government has set because this has an effect on the area as a whole. Both of these economic factors play a key role in business and how a business has to adapt to the changes in the economic structures around them. The Simulation The simulation brought to the light and showed that a shift in the supply curve or the demand curve or both curves could cause major changes in the economic environment of the economy around them and the company as a whole. The simulation showed that there was a demand for property, especially when Lintech Inc. moved into the area. There was a huge demand for the apartments and this caused Good life management to adjust prices to compensate for the demand to remain profitable...
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