Supply And Demand Simulation Essay

901 words - 4 pages

(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 ...view middle of the document...

Macroeconomic principles come into play in the simulation when considering how many units to keep rented and how many to keep empty in order to maintain a health supply and demand balance for the apartments. Macroeconomic principles help the property management company determine if it is wise to rent or not to rent all of tit’s buildings. The law of supply applies when making decisions to rent property because an increase of quantity of goods decreases the price at the same time.

In this weeks simulation a demonstration it was apparent that supply and demand was being induced into the simulation. The number of two bedroom apartments was 2,000 and the rental company was looking for a way to increase revenue by lowering the vacancy rate from 28% to 15%. The goal of 15% was achieved by lowering the rent this making people want to move into their apartments due to the reduced price. Subsequently as the demand for the lower costs apartments went up the supply of apartments increased respectively.

A shift in the supply and demand curves was demonstrated because as the number of available apartments increased the supply curve shifted to the right. This is because as the rental rates go up so does the supply. By renting all of the 2,500 apartments the rent cost was pushed to $1,500the demand curve shifted down and the increased rental rate caused the demand for the rentals to decline. In the simulation it was shown that the rent had to decreased to $1,050 in order for equilibrium, (supply equal to demand) to be obtained.

The principle is this simulation can be applied to my real word live in many ways. As a property owner who has and continues to rent property to tenants I am able to apply my...

Other Papers Like Supply And Demand Simulation

Supply And Demand Essay

1900 words - 8 pages Almost every holiday season, the most popular "must have" toy is in short supply. And there's usually a strong secondary market for the item – with parents paying well over the retail price just to make their children happy. Then, in January, stores reduce the prices of their remaining holiday items – cards, decorations, and so on. Why do parents – and stores – behave this way? The answer is in the laws of supply and demand. Together

Supply And Demand Essay

976 words - 4 pages Supply, Demand and Price Elasticity Team H ECO/212 Supply, Demand and Price Elasticity With the economy growing bigger and bigger, all the commodities that people rely on to go about their day to day lives does too. One commodity that people must have even if prices rose or drop is coffee. Team B will discuss the causes for shifts in supply and demand and how the shifts influence price, quantity

Supply And Demand Paper

603 words - 3 pages Running Head: Assignment: Supply and Demand Paper Assignment: Supply and Demand Paper XECO/212 University of Phoenix Appendix C Differentiating Between Market Structures Table and Questions Fill in the matrix and describe differences in public and private goods, common resources, and natural monopolies. Use your book and the Tomlinson video tutorials as a tool to help you answer questions about market structures

Price Elasticity And Supply & Demand

311 words - 2 pages Price Elasticity and Supply & Demand Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity Event Market affected by event Shift in supply, demand, or both. Explain your answer. Change in equilibrium

Consumer Income, Interest Rates, Aggregate Demand And Supply

358 words - 2 pages Consumer Income, Interest rates, Aggregate demand and supply Consumer income in the United States can be described as better than most compared to other countries. As of June, consumer income has increased .5 percent and personal disposal income has increased .4 percent (). Although the consumer income increased the consumer expenditures continued to decrease. This displays the consumer’s conservative spending habits. The consumer is yet to

Demand And Supply

648 words - 3 pages Suppose you are the manager of a restaurant that serves an average of 400 meals per day at an average price per meal of $20. On the basis of a survey, you have determined that reducing the price of an average meal to $18 would increase the quantity demanded to 450 per day. )Compute the price elasticity of demand between these two points. To compute the price elasticity of demand between the two points,let’s say A and B, Price P at A is $20

Work

758 words - 4 pages Supply and Demand Simulation Joseph Silva Eco 365 FARIBA KHERADMAND 5/6/14 In this paper we will be observing the key points of microeconomics and how it relates to week twos supply and demand simulation. We shall go over and review the basic principals on how the supply and demand curve works and is effected in certain senarios. Also in this summary we will go over the

Eco365 Week 2

784 words - 4 pages Microeconomics 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

Cellphone Simulation

2331 words - 10 pages Table of Contents Consensus versus Average Forecasting 1 Options 1 Demand Forecast 1 Supplier Selection 2 Change Orders 3 Lessons 3 Appendix A: Simulation Comments 4 Appendix B: Simulation Results 6 Consensus versus Average Forecasting The consensus forecasts worked well for quick insight into estimated demand for each month. In our first year we used the consensus demand because we did not know the dynamics of the group, and

Evsc

725 words - 3 pages $0.29 for exam gloves and an optimum cost of $0.24 each. The simulation also explored a “Quantity Discount Schedule” and the quantities required to experience price breaks. The introduction of new data was used to calculate the EOQ lot sizes and increase them to 4000 for both gloves followed by the order quantities decreased because of the excess supply. Both safety stocks and order quantities were within 100 of the optimum value. What was

Marketing

377 words - 2 pages Bullwhip Effect  The concept first appeared in Jay Forrester's Industrial Dynamics (1961) and thus it is also known as the Forrester effect. The bullwhip effect is an observed phenomenon in forecast-driven distribution channels. It refers to a trend of larger and larger swings in inventory in response to changes in customer demand, as one looks at firms further back in the supply chain for a product. Definition: The bullwhip effect can be

Related Essays

Supply And Demand Simulation Essay

731 words - 3 pages Supply and Demand Simulation Leon James O'Connell ECO 365 August 27, 2014 David Disciascio Supply and Demand Simulation The simulation showed examples of supply and demand based on managing rental apartments. The simulation showed increases and decreases that effect supply and demand by using rental scenarios. A decrease in the rental prices caused the demand to increase for two bedroom apartments. The demand of single family homes was

Supply And Demand Essay

859 words - 4 pages Laws of Supply and Demand David Evinger Natasha Futch Jeffrey McAvoy ECO/365 9/13/2015 Professor Tim Ringgold Introduction The supply and demand is very important in microeconomic and macroeconomic settings. The simulation described how economic factors have an effect on the number of influences, as well as price increases or reductions, cause dissimilarities in basis and demand. An incremental fall in the fee price led to

Supply And Demand Essay 1342 Words

1342 words - 6 pages Supply & Demand and Price Elasticity Paper Supply & Demand/Price Elasticity 2 Introduction The economy is made up of many layers. Each layer has it's own cause and effect that one has to take into account when a buyer is looking to purchase a good or a seller is looking at selling his/her good. Two big variables that control the market are the demand and supply for a good and the elasticity of a good. These two theories show

Supply And Demand Essay 744 Words

744 words - 3 pages What Goes Up Must Come Down Elisabeth Marci, Patricia Romo, Genevieve Trask University of Phoenix Economics 212 ONO9BSB06 Sherine El Hag August 13, 2009 The cause of changes in supply and demand are directly associated with the consumer. These changes may occur when the price of an item drops, the want for the item drops as well  and when the price goes up on an item the demand for it decreases. Situations that my effect