Complete Supply Demand Simulation located 'student website Write 700 1 050 word paper 'summarizing content Address Identify microeconomics macroeconomics principles concepts 'simulation Explain categorized principles concepts macroeconomic microeconomic

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This office requires a deep understanding of market movements such as demands and the quantity to be supplied to buyers. Applying the concepts learned in the simulation is an addedadvantage to this individual working in this department. The concepts learned from the simulation are vital in understanding the effects of supply and demand to the company.

Using Microeconomics to UnderstandSupply and Demand

In this simulation a reader can understand how supply and demand shifts happen and the causative factors. In addition, the writer of the simulation outlines how a firm meets the market equilibrium and factors that directly influence equilibrium. Prices below the equilibrium as portrayed in the simulation results in high demand for apartments,resulting in shortage of the number of apartments available for renting; the effect being price increases. In addition, the simulation enlightens readers that higher number of apartments would bring about low prices. It becomes easier to understand causes ofshifts in supply and demand after reading the simulation.

Effectsof Price Elasticity on Consumers

Supply and demand arevital economic concepts whereby product prices are positively or negatively influenced by the product s availability. Higher customer demands for any product in the market with a low supply would result in the increases in prices of that product. This may discourage customers from purchasing the product given the hiked pricing directly influenced by increased demands. High supply of products in the market would lead to reduction in prices a factor that is directly related to customer purchasing power. Low pricing caused by surplus good in the product would attract more number of consumers as opposed to few products selling expensively.

This principle of supply and demand when applied in purchasing of homes as in the case from the simulation may result in acquiring a home during periods of high availability; this would be when prices are low due to low market demand(Rogers, 1989). This is particularly true when comparing asking prices of homes to a time where local real estate market conditions have low supply of homes for sale but high demand of people who want to live in a particular area. Moreover, acquiring a home or property during periods of low demands and high supply may result in low…[continue]

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"Complete Supply Demand Simulation Located 'student Website Write 700 1 050 Word Paper 'summarizing Content Address Identify Microeconomics Macroeconomics Principles Concepts 'simulation Explain Categorized Principles Concepts Macroeconomic Microeconomic" (2012, October 02) Retrieved August 31, 2015, from http://www.paperdue.com/essay/complete-supply-demand-simulation-located-82379

"Complete Supply Demand Simulation Located 'student Website Write 700 1 050 Word Paper 'summarizing Content Address Identify Microeconomics Macroeconomics Principles Concepts 'simulation Explain Categorized Principles Concepts Macroeconomic Microeconomic" 02 October 2012. Web.31 August. 2015. <http://www.paperdue.com/essay/complete-supply-demand-simulation-located-82379>

"Complete Supply Demand Simulation Located 'student Website Write 700 1 050 Word Paper 'summarizing Content Address Identify Microeconomics Macroeconomics Principles Concepts 'simulation Explain Categorized Principles Concepts Macroeconomic Microeconomic", 02 October 2012, Accessed.31 August. 2015, http://www.paperdue.com/essay/complete-supply-demand-simulation-located-82379

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