Microeconomics and the Laws of Supply and Demand Essay

703 WordsSep 2, 20143 Pages
Microeconomics and the Laws of Supply and Demand ECO/365 Principles of Microeconomics August 18, 2014 Sam Pirnazar Microeconomics and the Laws of Supply and Demand Abstract The objective of the laws and the supply and demand simulation is to apply the supply and demand concepts to provide a better understanding on how to use the curves in order to figure out the equilibrium in the market for leasing two bedroom apartments. The simulation will help determine the difference between the movement along and shift of the demand and supply curves. Furthermore, how equilibrium can be established after one or both curves shift will be provided. Microeconomics and Macroeconomics Concepts…show more content…
The shift of demand curve happened when the quantity demand increased because of the cost for apartments decreased. The simulation showed that there was an increase in population in the city of Atlantis. The demand curve shifted to the right which means there was an increase. The concepts from the supply and demand introduced in the simulation are meant to help the taker understand how they can be applied to real world scenarios that may be encountered at a workplace or when using real-world products. The supply and demand is very much relatable to the workplace of the security industry I am a professional in. There is always a constant change in the products we use for life safety and peace of mind for consumers. The evolving of technology and the ability of gadgets we have at our fingertips is easily influenced by supply and demand. The desire or want of life safety and peace of mind could cause the price of these items to go up because the demand for them is much higher. The factor influencing the supply curve is everyone wants a security system for their home or fire alarm system for their business. Depending on the consumer demand for these products, the price could increase and cause the demand of these products to decrease then vice versa. The concepts of microeconomics and macroeconomics helped me understand the factors that affect shifts in supply and demand on equilibrium price and quantity by how they can affect the
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