Supply & Demand Paper Eco/365

When comparing supply and demand on different types of products there are a few things that are looked at. Price is something that can cause the demand on one good to change to a demand on another. For example when I was looking at different laptops the price ranges for laptops were anywhere from $300 to up and over a $1000 depending. Some are even more. Automatically I knew my budget and knew anything over $500 was out; therefore dropping the demand on the more expensive ones while increasing the demand on the lower priced items. This is pretty much how I

Microeconomics deals with the individual parts in the economy and how they relate to each other. Macroeconomics deals with the totals of these parts in our economy

Demand can either decrease or increase based on price of a product or service. Consumers have a tendency to buy products when there is a decrease in price. Companies have to kick off discounts to the consumers to increase demand. Pricing strategies for consumers are to buy when prices are low, although companies have to change prices to increase and decrease demand when needed. The simulation showed the same effect from the property management company. When supply was low of apartments the company had to increase price to decrease demand. When supply was too high the company had to decrease price to increase demand. The price elasticity of demand is flexible in which it can be changed and in return have an immediate effect. However, this can be harmful for

However, the rental rate also increases as the supply increases. Leasing all the apartments (which are 2,500), will drive the rental rate to $1,500. As the rental rate and the number of apartments supplied increases, the demand curve shifts downward. So, if the company increases the rental rate to $1,500 the demand for apartments will be lower. In order to reach equilibrium the company will have to lower the rental rate to $1,050. This is where the quantity demanded is equal with the quantity supplied.

This paper will define terms such as economics, micro economics, the law of supply, the law of demand and the factors which lead to a change in supply and demand. This paper will also summarize the article and

The analysis shows a supply curve, “which is an imaginary line at a point in time telling the quantity a supplier provides at various prices of the product” according to dictionary (dictionary, 2013). The cause of the supply curve in the simulation is that the rates of the apartment rentals went up, and so did the number of apartments GoodLife was willing to rent. This made the supply curve slope upward, as the goal is to rent out every apartment. The equilibrium price is $1550, and the quantity is 2500 apartments.

The change in expectations of management caused the supply of two-bedroom apartments to decrease. The expectation was that more individuals would prefer to live in a condo vice the two-bedroom apartment. It also eventually occurred and as a result, this factor caused the supply curve to shift to the

The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the

Increased supply without changes to the demand creates a surplus leading to a lower equilibrium price and decreased supply. Without changes to the demand, our cost structure would lead to a higher equilibrium price due to shortage.

Sub prime mortgage loans were designed to help people with bad credit purchase a home when they would not qualify. They were also designed to help people who didn't make quite enough income

Then there is in macroeconomics what is considered the invisible hand a silent force if you will. Goodlife could do one of two things it could lower its prices to entice customers to rent its vacancies as opposed to renting outside Atlantis. Or, if Goodlife were renting their apartments then they could raise their price because there were fewer to rent from in the city. This is known as the invisible hand theory that “gives more power to the supplier of something that is in short supply” (Colander, D.C., 2010). This theory says that I there is less apartments and more interested customers that Goodlife could raise its prices because of the demand for them.

The supply and demand simulation was a very helpful tool in understanding the effects of external factors on the supply and demand curves. Understanding this concept is fundamental in preparing for real life situations. I personally enjoyed the fact that the simulation was based on a real estate management company. I was able to understand and relate to the information given. There are a series of questions that will be answered and the topic of this paper will cover different concepts of micro and macroeconomics including; shifts in the supply and demand curves and its effect on the equilibrium price,

Microeconomics involves supply and demand in an individual market, individual consumer behavior, and externalities arising from production and consumption; while, macroeconomics involves monetary/fiscal policy, reason for inflation and unemployment, and international trade/ globalization.

Available replacements can also involve the demand and supply of a commodity. A bit of people living in Atlantis had possessed homes in the suburbs, and leasing houses within the community was not necessary. The prerequisite for houses fell, forcing the property-owners to cut back on the amount or bring down rent cost. To attract more clients in an attempt to increase wealth, the pricing can

Elasticity of demand helps the sales manager in fixing the price of his product, deciding the sales, pricing policies and optimal price for their products. The evaluation of this measure is a useful tool for firms in making decisions about pricing and production which will determine the total