Supply and Demand Simulation

819 WordsSep 5, 20124 Pages
Supply and Demand Simulation 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…show more content…
Like in real life the economy changes, this affects prices and affects what people need and want. The demand in what people want also changes. Microeconomics focuses on patterns of supply and demand, including the determination of price and output in the markets. Price Elasticity In relation to the simulation the price elasticity of demand affect a consumer’s purchasing and, the firms pricing because the company must adjust to the demand. Price elasticity is used to show responsiveness and or the quantity in demand. In the simulation as the years went by the consumer’s changed what their wants and needs were. The rental company adjusted to the change in price due to the economy and the need. Conclusion 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

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