ECO 365 Week 2 Paper
Supply and Demand
ECO/365
February 16, 2015
Eugene Kaufman
Supply and Demand
Understanding supply and demand is easy, but understanding how they affect the decisions made on what price to charge and when to charge is the challenging part. The shift in the demand curve and the shift in the supply curve, gives you a better idea of how to use the information given.
Microeconomics versus Macroeconomics Microeconomics is the study of individual choice and how that choice is influenced by the economic forces. In the simulation, the choice of renting two-bedroom apartments was in high demand. The two-bedroom apartment rates were increased because there were more people wanting them versus the number of apartments available to rent. Macroeconomics is the study of economics as a whole. As more people more to an area, the more demand for living spaces available. As the economy around you changes, so do the demands and the quantity supplied to meet those demands. In the simulation, a new company was moving to town. This was going to create more people wanting to live there in order to have a job with the new company. Acquiring more apartments to rent was the choice made to meet the upcoming demands.
Demand versus Supply
In the workplace, supply and demand are determined by how stable the economy is. Building aircraft hangars is a luxury and not a necessity. Funding for the hangars comes from public, private, and government funding. If the economy is not doing well, there is less funding available for hangar development. If the economy is doing well, there are funds available to build hangars. The supply of hangars is dependent upon the demand for hangars. In this industry, hangars are built on an as needed basis. When there is a demand for the hangar, the price of the hangars go up to meet the cost of the building them. When the demand is low, the price of the hangars decreases to try to get work for the company to stay moving forward.
In order
ECO/365
February 16, 2015
Eugene Kaufman
Supply and Demand
Understanding supply and demand is easy, but understanding how they affect the decisions made on what price to charge and when to charge is the challenging part. The shift in the demand curve and the shift in the supply curve, gives you a better idea of how to use the information given.
Microeconomics versus Macroeconomics Microeconomics is the study of individual choice and how that choice is influenced by the economic forces. In the simulation, the choice of renting two-bedroom apartments was in high demand. The two-bedroom apartment rates were increased because there were more people wanting them versus the number of apartments available to rent. Macroeconomics is the study of economics as a whole. As more people more to an area, the more demand for living spaces available. As the economy around you changes, so do the demands and the quantity supplied to meet those demands. In the simulation, a new company was moving to town. This was going to create more people wanting to live there in order to have a job with the new company. Acquiring more apartments to rent was the choice made to meet the upcoming demands.
Demand versus Supply
In the workplace, supply and demand are determined by how stable the economy is. Building aircraft hangars is a luxury and not a necessity. Funding for the hangars comes from public, private, and government funding. If the economy is not doing well, there is less funding available for hangar development. If the economy is doing well, there are funds available to build hangars. The supply of hangars is dependent upon the demand for hangars. In this industry, hangars are built on an as needed basis. When there is a demand for the hangar, the price of the hangars go up to meet the cost of the building them. When the demand is low, the price of the hangars decreases to try to get work for the company to stay moving forward.
In order