Laws of Supply and Demand

1244 WordsNov 9, 20145 Pages
Microeconomics and the Laws of Supply and DemandECO/365October 13, 2014Professor CoulibalyComedian P.J. O’Rourke said it best when he said, “microeconomics concerns things that economists are specifically wrong about, while macroeconomics concerns things economists are wrong about generally. Or to be more technical, microeconomics is about money you don’t have, and macroeconomics is about money the government is out of” (Beggs, 2014). On a serious note however, macroeconomics and microeconomics are different from each other yet both play a crucial role. The Atlantis simulation gave a great example of the two important aspects of economics, microeconomics and macroeconomics. This simulation showed different scenarios and situations of…show more content…
Their immediate response was to lower the rent and in doing so they raised the demand rate because it added to consumers desire to move into apartments with lower rental costs. As the demand for the lower rental costs rises, the vacancy rate or the supply decreased. 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. In applying this to my workplace, supply and demand is based on the number of students brought into the system every other week. Most times we expect to get six to eight new students every fourteen days. If that number goes up we have to order more goods to take care of the increase. On the other hand if that number decreases we have to order fewer goods. Also, with fewer students we need fewer staff to take care of those students. In microeconomics, the market supply and demand rely on competitors and prices. Market equilibrium is one of the most important concepts in the study of economics. “Market equilibrium is a market state where the
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