Eco365 Supply and Demand Simulation Paper

This can be used to portray the differences between short and long run quantity supplied in relation to rent controls. As the price falls from p1 to p3, there is only a small change in the number of rental houses supplied, from q1 to q3. This is due to the fact that in the short run there are fixed factors, such as capital, that limit the ability to change. Whereas in the long run, these factors are flexible and therefore there is a greater reduction of rental housing from q1 to q2, even with a smaller price reduction from p1 to p2.

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.

The Supply and Demand simulation was reviewed on the student website demonstrated the concepts of the concepts of microeconomics and macroeconomics. The principles of microeconomics and macroeconomics were explained and applied throughout the simulation demonstrate the rationale for the shifts in the supply and demand curve. Each shift is analyzed showing the effects of the equilibrium price, quantity, and decision making process for the simulated company represented. The concepts encountered in the simulation provide an opportunity to better understand how each can be applied to my current workplace. The Scenario provides an

Relating to the simulation, explain how the price elasticity of demand affects a consumer’s purchasing and the firm’s pricing strategy.

The Supply/Demand simulation involves acting as property manager for GoodLife Management in the fictional town of Atlantis. GoodLife Management manages seven apartment complexes in Atlantis. The property manager is expected to adjust the monthly rental rate of two-bed rental apartments and the quantity of apartments supplied based on the market trends. Factors that influence the supply and demand for apartments include personal preferences, economy, income, and rental rates. Each of these factors affect the ratio of vacant and occupied apartments. Decisions regarding supply, demand, and price require careful evaluation. Regular

Throughout my second run in the simulation I altered my strategy to have my prices lower then competition and it backfired greatly on me. My thought process for this was that having lower prices would definitely raise market share as consumers would chose the cheaper costs. At the same time I envisioned the drop in prices would result in more consumers switching companies and renting from Universal, but I was wrong. The results of this simulation ended with a loss of over $11 million but a market share of over 50%. My error for this simulation was that I relied too much on lowering prices. In the first simulation the last three months were the competition increased their prices and there were no change to universal resulted in losses of profits. I took that as not adjusting the prices and not that my prices were too low. However, after the second simulation

This essay would be an economic analysis concerning how rent control is used to ensure housing is affordable in New York. Using the market model, information and numerical statistics, this essay would prove how rent control has helped New York economically and how London currently has rent inflation. An explanation will then be given to why London needs to introduce rent control, and if London does not do that, there would be some serious consequences. An economic analysis will be given to the effects of introduction of rent control in London.

The demand for hotels will also decrease because less people are traveling for vacation due to rise in airfare. This will shift the demand curve to the right.

The simulation was used to understand supply and demand when renting out apartment homes. This paper identified two microeconomics and two macroeconomics principles, it includes 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 was analyzed. A description of what was learned about supply and demand from the simulation, and how to apply it in the work place 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 on how price elasticity of demand affects a consumer’s purchasing and firms pricing

As the number of available apartments increases, the supply curve shifts right. As the rental rate increases, the supply also increases. By leasing all 2,500 apartments, the rental rate will be pushed to $1,500. The demand curve begins to shift down as the rental rate and supply of apartments increase. If Goodlife increases their rental rate to the $1,500, the demand for the apartments will decrease. To reach the equilibrium Goodlife must decrease the rental rate to $1,050 and in so doing the number of demanded units and the number of supplied units will be equal.

This is a perfect example of a change in demand; when the demand increases, at the same or even a higher price, more quantity is demanded. In the figure below, a shift to the right in the demand curve signifies an increase in demand.

) Using a supply and demand framework, examine the impact on the equilibrium price and quantity of a product (or service) of an increase in the number of consumers in the market.

“Fig. 1” shows the impact of rent control in the short term. Left to the free market, the equilibrium would be where the price per rental unit is “P*” and the quantity of rental units would be “Q*”. Left to the free market the consumer and producer surpluses would be “ABG” and “BFGI” (respectively). Under these free

In order to investigate if the demand on the product has changed or not we use the supply demand model, it illustrates how prices vary as a result of a balance between product availability and demand. This model represents economic variables known as the independent and dependent variables, the independent variable is placed on the horizontal axis, and the dependent variable on the vertical axis.

The major residential complex across the Hudson River from midtown Manhattan comprised of six high-rise buildings that contain 4,000 condominium homes ranging in size from 1-bedroom to 3-bedroom, 3-bath. There are a total of six possible apartment configurations with prices that vary by floor and view. The river views that overlook New York City are higher priced, as are the higher floors. The most premium apartments are on the 31st floor facing New York in a 3-bedroom, 3-bath configuration on a corner of the building, going for $393,500. The lowest price condominium home is $175,000 for a 1 bedroom on the lobby floor. The developer has chosen conjoint analysis to accomplish the following objectives. First, based on the rank order of preference for condos differing in their combinations of view, floor height, unit size and price, the developer is looking to calculate the relative theoretical utilities of each. Second, each respondent's utilities for the various levels of each attribute have been analyzed and rank-ordered. Third, a mathematical model will be designed to simulate the sell-out of each specified building, varying pricing scenarios to see which will yield the optimal results. Fourth, the study seeks to define the optimal set of prices that would cause the building to sell out as evenly as possible. The