Premium Essay

Supply and Demand Simulatrion

In: Business and Management

Submitted By justme3172
Words 1033
Pages 5
The simulation is about a small well maintained city called Atlantis. Many positive aspects of this town make it an appealing place to live. These aspects include large parks, jogging paths, and maintained streets and sidewalks. GoodLife Management is the only company that rents apartments within the town. They currently have a vacancy rate of 28 percent. The principles of macroeconomics as well as microeconomics can help them understand and decrease the vacancy rate to 15 percent. It is important for the company to understand the shifts in the supply and demand curves. The rental company can be more successful if they know when to raise or lower the rent. Understanding that economics plays a large role in everyone’s environment will help people and companies be more successful.. Supply and Demand Simulation In the simulation, it is made apparent how often people must deal with the principles of macroeconomics and microeconomics. Every single person is affected by supply and demand. Understanding these aspects of economics will allow people to have a better grasp on the when’s, why’s, and where’s of making purchases in their everyday lives. In addition, understanding the price elasticity of demand can also help a person to understand the importance of how lower and higher demand can have a direct impact on prices. Macro and Microeconomic Principles Supply and demand are the two microeconomic principles that appear in this simulation. When discussing the rental apartments in Atlantis, the simulation discusses the supply and demand associated with them. Macroeconomic principles also appear in the simulation. These principles relate more to the adjustments occurring in the population flow when discussing whether it is a good idea to rent or not to rent. Other factors relating to this situation also would be considered...

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