Eco/365 Essay example

628 Words Jun 27th, 2013 3 Pages
Supply and Demand simulation
LaKeith A. Atkins Sr.
ECO/365
February 28, 2013
Watson Ragin

Supply and Demand simulation
• Identify two microeconomics and two macroeconomics principles or concepts from the simulation. Explain why you have categorized these principles or concepts as macroeconomic or microeconomic.
Supply and demand was affected by decreasing the rent to lower the vacancy percentage and maximize revenue for the company. This process is considered a temporary fix on a month-to-month basis and a good example of microeconomics. Another example of microeconomics is when the new company came into town and increased the population along with jobs. The population and job increase suggest they increase rental rates in response
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This adjustment will continue until equilibrium is reached between the new demand curve and original supply curve. At the new equilibrium, the rental rate is higher than before, and the number of apartments demanded and supplied has increase (University of Phoenix, 2003).
• How may you apply what you learned about supply and demand from the simulation to your workplace or your understanding of a real-world product with which you are familiar?
Supply and demand in my job market is based on attendance. Anytime we are expecting high attendance we order a higher volume of goods. When lower attendance we order a lower volume of goods even though the demand for the good may still be there. The attendance also affects the amount of employee we having working on any giving day.
• How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?
The supply and demand in microeconomics relies on competitors and the prices. The equilibrium is a point at which all the bidding is done.
• How do the concepts of macroeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?
Macroeconomics showed how the increase in jobs and population affects the increase or decrease on the apartments. Equilibrium rental rate is higher than before, and the number of apartments demanded and supplied has increase
• Relating to the simulation,…