Atlantis Simulation
In the simulation the change in supply was caused by how many apartments were being rented out. The change in demand increased dramatically a new company into town which caused people to want to live closer to work. When the change in demand increased, the supply was decreasing because the apartments were filling up and the company only had a set amount of homes to rent out. When the change in demand decreased, this caused an increase in supply for the company which means that they were losing out on revenue.
When there was a surplus, I was able to tell if the company needed to lower the rent to decrease the supply or raise the rent if there was an increase in demand. When there is a change in supply, the decision to lower rent but maximize revenue was a tough one. The company still wants to profit from the rental homes but because the demand is low the company has to find a way to increase the demand from the people. When the change in demand increased due to new job opportunities for people, there is opportunity to increase the rental price because the company knows that the demand is there and there is no competition.
There are four key points from the reading assignments that were emphasized in the simulation: shift in demand, shift in supply, price ceiling and equilibrium.
Being in the military does not allow me to utilize what I have learned in this simulation into my daily work but I can use it when it comes to fundraising for morale and welfare events. We typically have bake sales and burrito sales and try to at least double what we spend. We can use cheaper ingredients and increase the price which may give us a surplus of goods even though that is not our goals. Another scenario would be for my squadron to just make a set amount at a price we agree on and increase the demand so that people would be looking forward for our next event and may increase their purchase order in fear of us running out of goods again.
a.
When there was a surplus, I was able to tell if the company needed to lower the rent to decrease the supply or raise the rent if there was an increase in demand. When there is a change in supply, the decision to lower rent but maximize revenue was a tough one. The company still wants to profit from the rental homes but because the demand is low the company has to find a way to increase the demand from the people. When the change in demand increased due to new job opportunities for people, there is opportunity to increase the rental price because the company knows that the demand is there and there is no competition.
There are four key points from the reading assignments that were emphasized in the simulation: shift in demand, shift in supply, price ceiling and equilibrium.
Being in the military does not allow me to utilize what I have learned in this simulation into my daily work but I can use it when it comes to fundraising for morale and welfare events. We typically have bake sales and burrito sales and try to at least double what we spend. We can use cheaper ingredients and increase the price which may give us a surplus of goods even though that is not our goals. Another scenario would be for my squadron to just make a set amount at a price we agree on and increase the demand so that people would be looking forward for our next event and may increase their purchase order in fear of us running out of goods again.
a.