Applying Supply and Demand Concepts Eco 415

This is a result of a demand shift to the left related to a lack of available tenants for the apartments. The property management company has to decrease rental rates allowing the quantity supplied to decrease as well (University of Phoenix, 2012), creating a downward swing in the supply curve. The price of rentals decreased to create less quantity that is available for rent creating equilibrium and a decrease in surplus. This is a difficult decision to lower price significantly but will continue to create revenue for the property management company while decreasing supply of vacancy.

The price of rentals decreased to create less quantity that is available for rent creating an equilibrium and decrease in surplus. This is a hard decision to lower the price significantly but will continue to create revenue for the property management company while decreasing supply of vacancy.

In 2008, the American population saw a large wave of home foreclosures during the Great Recession that created an economic crisis that displaced millions of homeowners. Unable to recuperate from the terrible financial situation, these persons found comfort within the rental property industry. These previous owners, unable to purchase new homes, began renting property and living as tenants, contributing to the 4% growth record of the rental industry as published in a study that was conducted by Harvard University. With the growth of this industry, rental property owners began to devote more of their time to the development and marketing of their rental properties. These owners began providing lower rates for their properties, and they began making improvements that allowed them to increase the net profit that they received. With the continual “boom” of the industry and the popularity that it is receiving due to young adults needing places the live, rental property owners need an effective program that allows them to oversee their properties and communicate with their tenants.

This week’s assignment examined the effects of supply and demand on the pricing and availability of real world goods. In this instance, the simulation looked at pricing and availability of two bedroom apartments in the fictional city of Atlantis. The simulation takes a look at several different situations, outside market factors and governmental influence. By going through the simulation and adjusting the pricing levels of the apartments and the number that are being made available to be rented, the simulation shows the effects of things like new employers moving into the area, rent control laws being put into effect and the

Mr. Alexander is new to the property management arena and has no experience with multi-family dwellings. Due to our clients limited capital he cannot afford to hire a property manager. Because Mr. Alexander will also be working his normal full-time job, and doing the property management as a ‘side-job’ the ability to manage multiple subcontractors will be highly inefficient and could lead to disgruntled tenants and higher vacancy rates.

Goodlife Management experienced an increase in the demand curve of rental apartments due to the decrease in the rental rate. This shift in the demand curve would cause the equilibrium price to slightly increase because the demand curve would shift to the right and the supply curve would stay the same causing the price to fall higher upon that demand curve. The quantity of the apartments available would stay the same and ultimately would encourage the property manager to follow through with the decision to decrease the rental price. A great example of a shift in the supply curve occurred when the property manager was asked to rent all of the 2500 apartments available in order to obtain zero percent occupancy. With the increase of the monthly rental price, Goodlife Management shall have more incentive to lease more apartments to tenants. This shift in the supply curve would drive the equilibrium price in a more positive direction to further encourage the rental of more apartments. The quantity of apartments would obviously increase caused by the increase in the supply available for rent. Such a decision to rent additional apartments at a higher price would more than likely be a definite alternative as revenue shall increase as the vacancy rate gets closer to zero percent. Ebara Technologies, Inc. (ETI) is a nationwide corporation who manufactures vacuum pumps in which one of the corporate offices resides

Atlantis is a nice neighborhood with services consumers look for. A two-bedroom apartment in Atlantis is presented to show the effects of supply and demand. I am the property manager

Unfortunately there is also a risk in year 1 that the market’s vacancy rate will catch up to Laflin, thus I used the average vacancy rate of 16% from Table 4 in SouthPark IV for rental income he will receive from July 1990-December 1990. Assuming Laflin is correct and the market experiences growth, I then cut the vacancy rate back down to the 5% rate in year 2.

The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the

The sales data were obtained for a new oceanside condominium complex consisting of two adjacent and connected eight-floor buildings. The complex contains over 200 units of equal size (approximately 500 square feet each). The

The corporate housing market in downtown LA has expanded with the entry of TENTEN Wilshire into the fast growing segment. Corporate housing is a good alternative to hotel accommodation since it less costly and promises greater square footage. Besides offering full customer service, this type of accommodation is highly suitable for clients looking for both long and short-term apartment. On it part, 1010 Wilshire offers several benefits to executives and corporate clients residing in Sunset Hills CA neighborhood and surrounding areas. The benefits include strategic location in down town LA, zero overhead expenses and world class amenities.

The partners have chosen to sign a long-term lease in a newly constructed building that will house retail space on the first floor and the remaining floors will house additional office

A simulation was conducted to understand supply and demand when renting out apartment homes. This paper will briefly explain two microeconomics and two macroeconomics principles, it will include one shift of the supply curve and demand curve in the simulation. For each of the shifts the affect of the equilibrium price, quantity, and decision making will be analyzed. A description of supply and demand from the simulation and how to apply it in the workplace is included. Concepts of macroeconomics will be explained, and how understanding the factors that affect shifts in supply, and demand on the equilibrium price. In addition an explanation of how price elasticity of demand affects a consumer’s purchasing

Accordingly, we will first "analyze" competitive markets, by discussing demand and supply separately. Then we will try to put them back together (synthesize them) in order to understand the working of competitive markets.

Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand.