Eco/365 Essay example

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

Demand can either decrease or increase based on price of a product or service. Consumers have a tendency to buy products when there is a decrease in price. Companies have to kick off discounts to the consumers to increase demand. Pricing strategies for consumers are to buy when prices are low, although companies have to change prices to increase and decrease demand when needed. The simulation showed the same effect from the property management company. When supply was low of apartments the company had to increase price to decrease demand. When supply was too high the company had to decrease price to increase demand. The price elasticity of demand is flexible in which it can be changed and in return have an immediate effect. However, this can be harmful for

Supply is the total amount of a specific good that is available to the consumers. The supply of lobsters depends on the ocean temperature and since the ocean temperature is increasing, lobsters may once again come in a couple more weeks earlier than usual. In 2012, this caused the quantity of lobster to increase significantly, thus the supply curve shifted to the right. The shift caused the equilibrium price to decrease and the quantity to increase. On the other hand, if the ocean temperature is too low, then the lobster production rate is lowered. The supply curve will then shift to the left and cause the equilibrium price to increase and the quantity to decrease. The lobsterman cannot control the supply of lobsters since the production depends on the temperature. Another economic topic that came to my mind is the demand of a product. Demand is a consumer’s willingness to pay a price for a specific good. The demand curve would shift to the right if the price of the lobsters decreases due to mass production and vice

Price elasticity will always affect a consumer’s purchasing strategy as well as a firm’s pricing strategy. The simulation clearly showed the effect that the consumer and the economy as whole will have a direct influence on the market. Although microeconomics and macroeconomics are two different studies they complement each other well in this simulation. It is important to understand they will both work together in the workplace. The price will be affected since ultimately the consumer will have the power to affect the market. In property management, when there is a vacancy we as a company will do whatever it takes to fill it up. We will run specials in order to get the opportunity to get the people in the door and fill up our vacancies. First month rent free or half off first month is typical to offer as a special when the vacancies are high and our owners do not want to lost money. At the same time, when our vacancies are low and our occupancy is high, there are no specials or discounts that are given to consumers. This to me is the definition of elasticity and the power that the

However, over-time when the supply curve becomes more elastic, the shortage increases significantly and the reduction of quality and supply of housing ensue. In addition, as the shortage increases (Elastic supply), the demand for rental housing also increases in response to low rents. Consequently,

In conclusion, the simulation confronted the user with a variety of situations that affected the supply and demand of rental units. The prices and quantity supplied had to be adjusted according to the factors affecting the supply and demand. The key components from the reading material that were reinforced in the simulation were supply and demand, shifts in supply and demand, equilibrium, and price ceilings.

When the rental prices going up, which are fixed costs of production, then the profits will be reduced and the business owner will think whether their business is still profitable. The business owners will calculate the total revenue and total cost. If the total revenue it would get less than its total costs, the business owners will decide to exit the market. On the other hand, for the big companies, it is profitable to enter the market since the new community, which is the rich people, is their primary profit target

Changes in demand factors other than price of the good will result in a change in demand. An increase in demand is depicted as a rightward shift of the demand curve. An increase in demand means that consumers plan to purchase more of the good at each possible price. A decrease in demand is depicted as a leftward shift of the demand curve. Income is another factor that can affect demand. If a good is a normal good, increases in income will result in an increase in demand while decreases in income will decrease demand. If a good is an inferior good, increases in income will result in a decrease in demand while decreases in income will increase demand. Other factors affecting supply include technology, the prices of inputs, and the prices of alternative goods that could be produced. An advance in technology, a decrease in the prices of inputs, or a decrease in the prices of alternative goods that could be produced will result in an increase in supply. A deterioration of technology, an increase in the prices of inputs, or an increase in the prices of alternative goods that could be produced will result in a decrease in

The simulation this week was based on an apartment rental agency, GoodLife Management, in a fictitious town of Atlantis. GoodLife Mgmt. manages the month-to-month rental of 2- bedroom apartment units. BY using different situations and assumptions, the simulation provides examples of how certain market factors can affect the supply and demand of GoodLife’s rental units over a period of years. The factors illustrated included GoodLife 's managerial vision, the effect of population changes within Atlantis and outlying areas, changes in customer 's preferences and the application of price ceilings. Through the progression of the simulation, several key concepts were presented, they were: 1) supply and demand, 2) market and price equilibrium, 3) shifts in supply and demand and 4) the potential effects of governmental imposed price ceilings.

From this week of instruction, the simulation demonstrated how a fictional apartment management company is impacted by several monetary influences. The concepts of microeconomics can be classified as changes in equilibrium,

During this process the supply and demand has to be carefully analyzed. This analyzation incorporates the competition. Within the low-friction economy you have to figure out how to execute your products and services better than everyone else. The demand helps determine the overall price that the items will be sold for. Based on the costs, the producers will use this to determine how much they are willing to supply. This showcases that a relationship does exists. For every action, there is a reaction. Regardless of whether or not there is a positive slope or negative slope, the results give the companies to work from. Therefore, based on the actions that occurs amongst the companies, products and target market correlate with each other and, effect the demand and supply rate.

The concept is derived from combining equilibrium price and equilibrium quantity to yield the equilibrium of a specific market. Changes in the determinants of demand, such as how much the product sells and the price of the product can affect the equilibrium of a market.

For example, if the demand curve shifted to the left, it would decrease demand. The results would show fewer prospects for renting an apartment. The business would take a hit due to the decline in applicants looking to rent an apartment and in return will have to decrease prices to compensate for the demand and reset an equilibrium. The equilibrium price would ultimately drop to support the decreased demand, while supply stayed constant. If the supply curve shifted to the right, the visual will show an increase in apartments for rent. The two scenarios will show supply increase, one because demand decrease or an influx in supply creating more apartments for rent. The simulation shows that corporations need to be flexible and adjust to the economic environment. If they understand the problem, a successful solution can be created. One suggestions for the company should be a price decrease to adjust to the economic value, creating an affordable and competitive solution. The goal is to always increase or maintain gross profit. By reacting to the shift they were able to maintain prospects for their apartments and generating profits. The prices of the two bedroom apartments are a factor because of the demand of the apartments per unit during a specific timeframe and market conditions. To be strategic and maximize profits, Good Life management determined the amount of apartment units and use a pricing model to ensure they maximize profit. From a

In the following articles there is talk about different economic situations. For example there is talk about the high demand of jobs, while there are many potential employees and how that affects the wage not growing. Also talk about change in Demand with references to expanding to an international market as a way to increase sales in a way other than price change and how this would cause a right shift in the demand curve.

Microeconomics looks at how individual players in the economy, such as households and firms, interact. It focuses on the impact that their economic choices have on the allocation of scarce resources to meet unlimited demand. These interactions match what one party wants or demands in economic term and what the other gives in exchange (supply). Each time someone buys a chocolate bar from a newsagent or undertakes the morning paper round, there’s an interaction between supply and demand (ESRC).