Supply And Demand Simulation Paper

  • Length: 723 words (2.1 double-spaced pages)
  • Rating: Excellent
Open Document

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Text Preview

More ↓

Continue reading...

Open Document

Supply and Demand Simulation
1. What causes the changes in supply and demand in the simulation?
Factors that affect supply and demand in the simulation are driven by the availability of the 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. In the simulation, as the price decreased, demand increased. The supply curve, on the other hand, is upward sloping. The quantity of two-bedroom apartments increased as the price increased. A surplus in the market for the apartments exerts downward pressure on the price. This means to attract the possible renters, GoodLife would need to lower prices. On the other hand, a shortage in the number of available apartments exerts an upward pressure on the price. To maintain the balance of quantity demanded and the quantity supplied, GoodLife would need to raise the prices.
2. How do shifts in supply and demand affect your decision making?
Shifts in supply and demand in the simulation were caused by several factors. Changes in the direction of GoodLife Management and the population changes within Atlantis and outlying areas had an affect on supply and demand in the simulation. Changes in the preference of the tenants caused the demand for the apartments to decrease. GoodLife Management began converting the rental apartments into condominiums that were for sell, causing a decrease in the supply at the same time as the decrease in demand. Because of this, the supply curve and the demand curve both shifted to the left.
3. List four key points from the reading assignments that were emphasized in the simulation.
Four key points in the simulation were supply and demand, equilibrium, shifts in the supply and demand, and price ceilings. The simulation is based on supply and demand and is very helpful in understanding the different factors that can affect it. Equilibrium is when the quantity demanded equals the quantity supplied. The simulation showed if prices were below equilibrium, the quantity of apartments demanded exceeded the quantity available and caused a shortage in the number of available apartments. This affect also causes the price of the rental apartment to increase. If prices were above equilibrium, the opposite would happen. There would be a surplus of available apartments and would drive the price down. Shifts in supply and demand in the simulation were illustrated by different factors causing supply and demand to decrease at the same time.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

How to Cite this Page

MLA Citation:
"Supply And Demand Simulation Paper." 26 May 2018
Title Length Color Rating  
Essay about International Trade Simulation - Every economy can count on two things; there will always be supply and there will always be demand. For some countries, supply cannot keep up with the demands for the economy and when that happens, international trade is sometimes an only option. As with anything in life, there are advantages and disadvantages to international trade. One of the major advantages to international trade is that it allows countries with a surplus of supply to trade with another country that may have a shortage of that same supply....   [tags: Economics, International Trade]
:: 2 Works Cited
1297 words
(3.7 pages)
Better Essays [preview]
Fiscal Policy Simulation Essay - Fiscal Policy Simulation In this paper I will be discussing the effects of the changes in fiscal policy in the simulation, I will discuss the effects of changes in fiscal policy using the aggregate supply and aggregate demand framework, I will list four key points from the reading assignments that were emphasized in this simulation, I will apply what I learned from the simulation to my workplace, and I will discuss my growing further results from the assessment. Effects of Changes in Fiscal Policy What were the effects of the changes in fiscal policy in the simulation....   [tags: Economics Case Study] 986 words
(2.8 pages)
Strong Essays [preview]
Essay on Supply Chain Management - Supply Chain Management Introduction Supply chain management is emerging as one of the most powerful business practices. It is transforming the way manufactures operate and work with partners - even the way they think about business. Why all the sudden interest. Mere observation of industrial practice brings to light a simple truth; very few materials remain in the constant ownership of one person, persons or company from their source to the time they are sold to the end customer. "Almost invariably, material flows through a series of 'players' whose role may be to transform (manufacturing plants), store (warehouses) or move (distributors) material." This results in the establishment...   [tags: GCSE Business Marketing Coursework Essays]
:: 20 Works Cited
5105 words
(14.6 pages)
Powerful Essays [preview]
Supply and Demand Simulation Essays - ... The supply curve states the quantity rises as price rises, and similarly the quantity falls as price falls if all other things are constant. A shift in the supply curve indicates something is not constant. In the simulation, Goodlife decides to convert some of their apartment homes to condominiums. The switch is in response to the growing interest in detached homes. Goodlife decided to decrease their supply of apartments to equalize the rent rate at a higher threshold. The supply change coupled with a further demand shift lowered rates, but not as far as it would have been if the supply stayed the same....   [tags: business decisions, micro and macroeconomics]
:: 3 Works Cited
1008 words
(2.9 pages)
Better Essays [preview]
Conversion of a Physical Biology Lab to an Online Virtual Lab Essay - The core curriculum of biology courses at the college level typically includes a lab component. Availability of biology courses, and their accompanying lab, can often be limited due to a shortage of the resources required to offer the lab. These resources include faculty time, laboratory supplies for the physical lab, laboratory facilities, and safety/training resources for lab technicians. Due to these limitations, the number of students that are able to enroll in hands-on lab training fails to meet demand....   [tags: technology, simulation, genetics]
:: 7 Works Cited
1671 words
(4.8 pages)
Powerful Essays [preview]
Supply and Demand Determinants in the Auto Industry Essay - The American auto industry is in a crisis, their vehicles are not in demand and they need government bailouts to keep their businesses afloat. American vehicles are not on demand because people want fuel-efficient, the car companies that are not at the point of bankruptcy, longer lasting vehicles, and hybrid cars. The American car companies are at a point of bankruptcy and people don’t want to buy cars from a company that may not be there in a couple of months. The foreign car companies are doing well and they much more dependable now that we are in an economic crisis....   [tags: Supply and Demand, economy, Auto Industry, ] 514 words
(1.5 pages)
Good Essays [preview]
Essay on Supply And Demand Simulation - Introduction The Supply and Demand simulation involves acting as Property Manager for GoodLife Management, a property management firm that manages apartment complexes in Atlantis. This simulation was an exercise in applying the supply and demand concepts based on current market trends. The property manager is required to adjust the monthly rental rate of two-bedroom rental apartments and number of apartments available. Supply and demand within the simulation were manipulated by the rates charged for the rentals, the economy, income, and personal choice....   [tags: Economics Economy]
:: 2 Works Cited
1303 words
(3.7 pages)
Good Essays [preview]
Supply and Demand Essay - Supply and Demand Every organisation which provides goods or services to fee paying customers must, by its very nature, charge price for that good or service, to pay for its costs, have retained profits for investments and to keep its shareholders happy. In theory, the market price of any good or service is determined by the interaction of forces of demand and supply. There is an old saying, that ?if you can teach a parrot to say ?demand. and ?supply. you have created a trained economist.?1 There is some truth to this saying as most problems in the economics can be examined by applying the rules of demand and supply....   [tags: Economy Economics Supply Demand Essays] 2214 words
(6.3 pages)
Powerful Essays [preview]
Aggregate Demand And Supply Essay - AGGREGATE DEMAND AND SUPPLY AGGREGATE DEMAND:- Aggregate demand is the amount which will be spent at different values of the price level. It is composed of consumption (C), investment (I), government spending (6) and net exports (X—M). THE AGGREGATE DEMAND CURVE:- The aggregate demand curve shows the quantity of goods and services which households, firms, overseas buyers and government are prepared to buy at different values of the general price level. It is drawn on the assumption that other things (e.g....   [tags: Report Research Aggregate Supply Demand Curve] 1945 words
(5.6 pages)
Powerful Essays [preview]
Simulation On Supply And Demand Essay - One of the most important issues that prospective homebuyers should be aware of while looking to purchase a home is their area’s local real estate market condition. By understanding the different economic trends that a real estate market can be at, the prospective homebuyer will be able to buy a home for a price that is advantageous to them. Although business cycles affect the purchase of a home in a number of ways, one of the biggest influences on a home’s price is the supply and demand in the local real estate market....   [tags: Economics] 1772 words
(5.1 pages)
Strong Essays [preview]

Related Searches

Price ceilings can cause problems in the equilibrium between supply and demand. If the price for the rental apartments was at the ceiling price, and the demand for the apartments increased, the supply would begin to decrease. The problem faced in the simulation is this begins a snow ball affect and the quantity demanded exceeds the quantity available and a shortage will continue.
4. How can you apply what you learned about the concepts of supply and demand from the simulation to your workplace?
The writer has a position of Medi-Cal Eligibility Worker (the person in charge to ensure eligibility for an applicant of public assistance benefits) in the Los Angeles County, which has different district office locations countywide. With such public assistance benefits, there is a huge demand for Eligibility Workers in the Medi-Cal program assistance as well as other programs e.g.: Food Stamps, Cal Works, General Relief and Aged, Blind and Disabled (ABD) programs. Many people filled the office applying for such benefits. Applying the concepts learned in the simulation can definitely be an asset. It is important to understand the necessity for such programs and the effects that processing the applicant's application has on supply and demand.
5. Summarize your results of the assessment for your instructor.
The supply and demand simulation is based on the management of rental apartments by GoodLife Management. The apartments are located in a fictitious town called Atlantis and was based on the management of the supply and demand of rental apartments by a management company. The simulation showed how supply and demand can be affected and how shifts in supply and demand happen. It also showed how equilibrium is met and how price ceilings and other factors can affect it. The author of this paper can definitely relate the concepts in the simulation to the workplace. It is key to understand supply and demand and what changes affect it.

Return to