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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Supply Demand Simulation

Macro and Microeconomic Principles

From the simulation, the two major microeconomic principles are supply and demand. The simulation majorly focuses on the supply and demand of rental properties in Atlantis. In addition, the influences on supply and demand form the major topic discussed in the simulation. The macroeconomic factors clearly stated in the simulation are changes in the population trend, choosing to rent or buy apartments and factors that directly influence these changes. Colander (2010), states that the quantity demanded always increases with falling prices and quantity supplied reduces with receding market prices(Colander, 2004).The company s supply is almost 2,000 apartments; the company speculates at reducing the vacancy rates to 15 percent to increase demand, a clear applicability of the demand law.

Demand and Supply Shifts

The availability of rental apartments, demand for rentals, number of potential renters and the pricing are the common factors that affect supply and demand from the simulation. From the simulation, the demand curve slopes downwards; rising prices decrease demand and vice versa. On the other hand, the supply curve slopes downwards; the quantity of apartments increases with price increases in Atlantis.In addition, higher number of apartments exerts pressure on pricing leading to lowering of prices and for GoodLife to have higher number of renters, they must reduce apartment prices. On the contrary, lower number of apartments will result in upward pressure on pricing and to gain a great market share and maintain equilibrium, the firm would be obliged to increase prices.

Effects of Shift in Supply and Demand

From the simulation, there are several factors that directly contributed to shifts in both supply and demand. Management changes in the firm as well as population changes within Atlantis locale contributed to shifts in demand and supply from the simulation(Mishkin, 2004). There was a reduction in the demand for the apartments due to changes in the tenants preferences. By converting the rental apartments into condominiums for sale, GoodLife recorded negative deviations in both the demand and supply. Therefore, the supply as well as the demand curve shifted to the left.

Application of the…[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 May 30, 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.30 May. 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.30 May. 2015, http://www.paperdue.com/essay/complete-supply-demand-simulation-located-82379

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