Eco 365 Supply and Demand Simulation Essay

Chapter 3 introduces the law of demand, the law of supply, and the equilibrium markets for goods and services. We’ve also learned under what conditions the demand and supply curve will shift and the inverse relationship of price and quantity will cause movement along the demand curve. The chapter also included illustrations and impact of price ceilings and price floors. While Chapter 4 demonstrates the same principles - law of demand and law of supply also applies to the labour and financial markets.

2. The principle of supply and demand is a fairly simple concept. The Manufacturer creates the supply and the consumer creates the demand. For example, if a manufacturer creates popular toy they will increase the supply around Christmas time and decrease the supply during middle of February. This is due to the fact that the consumer creates much more demand around that time.

Supply and demand is a fundamental element of economics; it is the main support system of a market economy. Demand can be interpreted by the quantity of a product or service a consumer is desired to acquire at a given time period. Quantity demanded is the amount of product consumers are willing to purchase at a given price; the relationship between price and quantity demanded is commonly known as the demand relationship. Supply however, accounts for how much a market produces for consumers. The quantity supplied refers to the actual amount of a certain good firms are willing to supply to consumers when receiving a certain price. Having limited resources we all have to

We also discovered many suffer from an allergy which affects 92 men and 85 women 17% overall. Many of the employees suffer from migraines 16%, 75 men and 93 women. Although only 13% of the employees 78 men and 57 women Respiratory Diseases is still a cause of concern. The Last medical condition we discover was digestive disorders at 8% 52 men and 32 women. Now our task was to develop a plan and stay within our $4000 premium limit (Axia College, 2006).

Economists have created a theory of demand which states the following. Demand curve has a downward slopping which shows the relation between price and quantity while all other factors are equal. At higher prices the demand will decrease, while at lower prices demand will increase.

To summarize the concept, when the price of a product falls, the quantity demanded of the product will increase, and conversely, when the price of a product increases, the quantity demanded of the product will decrease, where all other relevant factors are constant. (Glen, 2012).

The law of supply according to McConnell, et al (2009) states, “As price rises, the quantity supplied rises; as price falls, the quantity supplied falls,” (p. 51, para. 5). McConnell, et al (2009) go on to say the law of supply can be influenced by, “…(1) resource prices, (2) technology, (3) taxes and subsidies, (4) prices of other goods, (5) producer expectations, and (6) the number of sellers in the market,” (p. 52., para. 4).

Supply and demand is a significant element of business procedures thus this paper will evaluate how supply and demand affects a business via a simulation provided by the University of Phoenix. In this paper, I will talk about the reasons for changes that occur in supply and demand. I will talk about how shifts in supply and demand influence the organization’s decision making process as well. I will also cover the four key points established within the reading assignments and how they relay to the simulation and how every theory can be related to situations in a workplace environment. This paper will establish how price

The supply curve follows a similar concept as the demand curve. The supply curve states the quantity rises as price rises, and similarly the quantity falls as price falls if all other things are constant. A shift in the supply curve indicates something is not constant. In the simulation, Goodlife decides to convert some of their apartment homes to condominiums. The switch is in response to the growing interest in detached homes. Goodlife decided to decrease their supply of apartments to equalize the rent rate at a higher threshold. The supply change coupled with a further demand shift lowered rates, but not as far as it would have been if the supply stayed the same. The reduction of rental units available caused s supply curve shift (University of Phoenix, 2014).

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

This week's simulation provided working examples of several factors that effectively change supply and demand. These factors included GoodLife's management direction, population changes within Atlantis and outlying areas, changes in consumer's preferences and the implementation of price ceilings. The simulation provided a working environment that I was able to manipulate. Being able to manipulate the outcome

In economics, supply, demand, and equilibrium price are the three factors that help economist understand what is happening in the economy. Supply is essentially the willingness to produce a number of goods at alternative prices within a time period (Schiller, 2014). The producers such as business firms are the ones that supply goods and services. Demand is the willingness to buy a number of goods at alternative prices within a time period (Schiller, 2014). The consumers are the ones that normally control the demand in the market. Equilibrium price is when the quantity demand and the quantity supply equal each other and the price of a good or service is fitting for both the producer and consumer (Schiller,

The amount of apartments demanded became more than the number of apartments available at the current rental rate. Goodlife increased their rental rate causing an upward shift in the supply curve. As the rental rate increased so did the quantity supplied. It was of high importance in this simulation that the management firm carefully analyzes the rental rate, demand, and supplied quantity of apartments.

Evaluate each of the following changes in supply and/or demand. How will each affect equilibrium price and quantity in a competitive market? Will price and quantity rise, fall, or be unchanged? Based on shifts, will the answers be indeterminate?

According to Garrod and Willis (2007), in economics, the law of supply and demand is regard as one of the fundamental principles running an economy. It is illustrated as the situation where as supply raises the price will likely drop or vice versa. As demand raises the price will likely increase or vice versa. Essentially this is a standard that nearly all people intuitively understand concerning the relationship of services and goods against the demand for those services and goods. According to Lipsey and Courant (2011), when demand and supply are