eco/365 week 2 individual

1293 Words Oct 4th, 2013 6 Pages
Supply and Demand Simulation
ECO 365

Supply and Demand Simulation
The Supply and Demand simulation was reviewed on the student website demonstrated the concepts of the concepts of microeconomics and macroeconomics. The principles of microeconomics and macroeconomics were explained and applied throughout the simulation demonstrate the rationale for the shifts in the supply and demand curve. Each shift is analyzed showing the effects of the equilibrium price, quantity, and decision making process for the simulated company represented. The concepts encountered in the simulation provide an opportunity to better understand how each can be applied to my current workplace. The Scenario provides an
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This is a result of a demand shift to the left related to a lack of available tenants for the apartments. The property management company has to decrease rental rates allowing the quantity supplied to decrease as well (University of Phoenix, 2012), creating a downward swing in the supply curve. The price of rentals decreased to create less quantity that is available for rent creating equilibrium and a decrease in surplus. This is a difficult decision to lower price significantly but will continue to create revenue for the property management company while decreasing supply of vacancy.
Throughout the simulation I encountered instruction that I can apply the use of supply and demand at my workplace. As a soldier, leader and educator, supply and demand is represented by available student seats, man hours, supply, and equipment. The cost of educating one soldier costs $600 plus or minus. In today’s economy, we are forced to become creative in determining the best means to decrease costs. Although our demand remains consistent the military must meet the supply of inventory that is available. As demand decreases the military also has to decrease supply on hand while also cutting labor hours of not only soldiers as well as civilian personnel to remain profitable. When the demand increases for our services the need for increased personnel and the supplies also increases. The simulation also showed me several ways businesses can operate by simply adjusting supply to meet

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