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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 decreased by an increase in two-bedroom apartments. Fewer houses were supplied with lower rent and more houses were supplied at higher prices. The simulation is a learning tool to see how supply, demand and the equilibrium affect the rentals. The ...view middle of the document...

I remember this as micro meaning small and macro being large. A second microeconomic principle I observed from the simulation was the students were to calculate the rental rate monthly that differentiates between supply and demand.
The simulation on supply and demand reflects how internal and external factors affect supply and demand in the economy. The company, Goodlife Incorporated, needed to reach the equilibrium point by fixing the pricing of the apartments to effectively manage the revenue even though they were successful with the two bedroom apartments.
Applying the information from the simulation to my daily tasks in the workplace is more of an understanding of supply and demand and the effects of each in businesses. It is important to understand the supply and demand curves and how the fluctuate and why.
The concepts of microeconomics provide an understanding of how shifts in demand and supply equate to quantity and the equilibrium of pricing by providing an understanding how prices and quantities are determined. The equilibrium acts as a referee as there is no incentive to accept lower prices and offer higher prices.
Macroeconomics and microeconomics, although different, complement each other. Both working together in a workplace are important and understanding the difference...

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