Supply and Demand Simulation: Project Atlantis

1226 Words Apr 22nd, 2008 5 Pages
Supply and demand simulation: Project Atlantis The supply and demand simulation was a simulation of GoodLife Management, a property management firm controlling all of the seven apartment complexes in the city of Atlantis. For the 9 year period in the simulation the housing market had many ups and downs because of businesses moving into the area bringing an increased amount of jobs, the change in consumer preferences and company expectations, and the policy changes induced from the government.
What causes changes in supply and demand in the simulation? In year one GoodLife Management wanted to fill the apartments with a less than 15 percent vacancy rate while gaining the most possible revenue. They did this by lowering prices to $950
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When a price ceiling occurs it keeps prices down so that consumers are protected from high pricing, but it creates problems also. Price ceilings create shortages because the consumer demands more apartments than GoodLife is willing to supply at the price ceiling, this can lead to discrimination of renters and higher key deposits required by the property management firm.
How can you apply what you learned about the concepts of supply and demand from the simulation to your workplace? Supply and demand are constantly changing and need to be reevaluated constantly because equilibrium price and quantity are constantly changing. My company competes in a global market so the concepts are changing much more than in the city of Atlantis. Since I am not in any managerial position I cannot apply any of these concepts in my workplace. I can say that if they were to pay me more, I would supply more of my product to the company so that they could sale more of them and create higher revenue.
Determine how price elasticity of demand affects the decision making of the consumer and of the organization. Consumers determine how much price affects their decision making. The more responsive to price consumers are, the larger the number of price elasticity they have. In the Atlantis simulation both the GoodLife and the consumer had a higher percentage of price

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