Atlantis Simulation
The Atlantis simulation shows the platform of supply and demand in a real estate/rental market. This simulation shows what causes the fluctuations in supply and demand from the need to increase occupancy rate to an influx of new residents due to growth within the local economy. These factors are direct implications of the constant changes happening to supply and demand within the Atlantis community. When occupancy is low it shows there is an increased supply of apartments available to rent. When the need occurs to increase the total occupancy within the complex, prices will begin to drop in an effort to balance the occupancy rate. When this occupancy rate is high, the prices will increase for the few openings the complex may have. An Economic
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factor is another cause that directly affects the supply and demand curve. When a company decided to expand their operations and open a large facility in Atlantis the result was an increase in the population that caused the supply to drop and the demand to increase which in result caused the rental prices to increase. Each of these causes directly affect the supply and demand curve, so when the S&D curve needs to be read company’s will be aware of the most current market conditions to make the most educated decision.
When a real estate company in Atlantis reads a supply and demand chart they use the information provided to make educated decisions on how they operate their business.
From the price of the property, advertising costs and expansion planning the supply and demand chart offers great insight for decision-making. When a company with a large number of two bedroom apartments for rent wants to ensure they are getting top dollar for their rentals. If there is a high demand for two bedroom apartments they may be able to rent properties that would normally rent for $1,000 to rent for $1,200 depending on how high the demand is. Where as if the demand was lower than normal that same apartment may rent for $800. When the demand is low, the company may reevaluate their advertising costs to save for when the demand is high along with the competition. When a real estate company has a consistently high demand or witnesses a market changing factor come into play (i.e. a large company taking up headquarters in the area) there most obvious decision is to expand. When they decide to expand the company will offer them a larger place in the market, in result there will be an increased supply that will change their supply and demand curve and will help them make the decision to again adjust their prices to meet the new demand. This same concept, along with many others, can be applied to any industry to help make educated decisions… if read …show more content…
properly.
In education, the supply and demand curve is based on a more service-oriented product.
Online education, like formal education requires a certain ratio of teacher to student in terms of how many students can be in one classroom. Also, in addition to the Faculty there are a number of other support position in academics, finance, new student advising and career services just to name a few. These support positions are all required to be trained and able in order to support the required student number. In for-profit online education are focused on meeting the demands of the consumer and offering everyone qualified the opportunity for an education with no max admissions rate and the company will remain in a growth mode to support all who require support. When you have a steady increase in the demand of an industry for over 20yrs and suddenly the demand dissolves due to a change in government regulation, there is no way but down. Example, University of Phoenix has been the leader of the online education market for over 15yrs. Recently, there has been talk of new government regulations pertaining to students’ financial aid which will effect the number of students eligible to attend this university which causes the market to freeze and the demand to decrease leaving an organization unable to support their own
infrastructure.
Like all industries real estate has its applications for a supply and demand curve, which offer it insight into the trends of the local market. By understanding these trends offer the industry the opportunity to make a well-educated decision when making decisions on the future growth.
factor is another cause that directly affects the supply and demand curve. When a company decided to expand their operations and open a large facility in Atlantis the result was an increase in the population that caused the supply to drop and the demand to increase which in result caused the rental prices to increase. Each of these causes directly affect the supply and demand curve, so when the S&D curve needs to be read company’s will be aware of the most current market conditions to make the most educated decision.
When a real estate company in Atlantis reads a supply and demand chart they use the information provided to make educated decisions on how they operate their business.
From the price of the property, advertising costs and expansion planning the supply and demand chart offers great insight for decision-making. When a company with a large number of two bedroom apartments for rent wants to ensure they are getting top dollar for their rentals. If there is a high demand for two bedroom apartments they may be able to rent properties that would normally rent for $1,000 to rent for $1,200 depending on how high the demand is. Where as if the demand was lower than normal that same apartment may rent for $800. When the demand is low, the company may reevaluate their advertising costs to save for when the demand is high along with the competition. When a real estate company has a consistently high demand or witnesses a market changing factor come into play (i.e. a large company taking up headquarters in the area) there most obvious decision is to expand. When they decide to expand the company will offer them a larger place in the market, in result there will be an increased supply that will change their supply and demand curve and will help them make the decision to again adjust their prices to meet the new demand. This same concept, along with many others, can be applied to any industry to help make educated decisions… if read …show more content…
properly.
In education, the supply and demand curve is based on a more service-oriented product.
Online education, like formal education requires a certain ratio of teacher to student in terms of how many students can be in one classroom. Also, in addition to the Faculty there are a number of other support position in academics, finance, new student advising and career services just to name a few. These support positions are all required to be trained and able in order to support the required student number. In for-profit online education are focused on meeting the demands of the consumer and offering everyone qualified the opportunity for an education with no max admissions rate and the company will remain in a growth mode to support all who require support. When you have a steady increase in the demand of an industry for over 20yrs and suddenly the demand dissolves due to a change in government regulation, there is no way but down. Example, University of Phoenix has been the leader of the online education market for over 15yrs. Recently, there has been talk of new government regulations pertaining to students’ financial aid which will effect the number of students eligible to attend this university which causes the market to freeze and the demand to decrease leaving an organization unable to support their own
infrastructure.
Like all industries real estate has its applications for a supply and demand curve, which offer it insight into the trends of the local market. By understanding these trends offer the industry the opportunity to make a well-educated decision when making decisions on the future growth.