Supply and Demand
Supply and Demand Simulation
Catrina McLaughlin
ECO/365
November 3, 2013
Dennis McGuckian
Supply and Demand Simulation
In the ECO/365 course you are taken through a simulation, where you are asked to manage the supply and demand of two-bedroom apartments. The apartments are located in a city called Atlantis, which seems to be a very attractive place to live. The stimulation is used to provide the learner with real-life situation of how the pricing of a good or service (price ceiling) can affect the quantity demand, and the quality supplied. Throughout the simulation the learner is asked to price the rate of the two-bedroom unit. And based on the rate, you are given the results of your actions, and how it affected the market.
Through this simulation there were examples of microeconomics such as the government imposing a ceiling cap on monthly rental rates. To ensure the affordability for middle class workers also. In addition to GoodLife management deciding to offer month to month lease, and lower their rental price. In microeconomics you learn that decisions by both firms and individuals are motivated by cost and benefit considerations. Costs can be either in terms of financial cost such as average fixed costs and total variable cost (economics.about.com). We learned that macroeconomics deals with the structure and decision making of the economy as a whole (Colander, D.C. 2010). I think it is only fitting that I mention that all though most everything was consistent. However, we did see that the lower the rate of the apartment, the more of a demand.
One shift in the demand curve is the availability of the two bedroom units was in high demand. In part to the price declining and there being available renters. However, in the beginning as the apartments increase, so did the price. As we notice in the simulation when the rental demand is higher the price increases. However, when the quantity demands decrease, than there is an increase in the
Catrina McLaughlin
ECO/365
November 3, 2013
Dennis McGuckian
Supply and Demand Simulation
In the ECO/365 course you are taken through a simulation, where you are asked to manage the supply and demand of two-bedroom apartments. The apartments are located in a city called Atlantis, which seems to be a very attractive place to live. The stimulation is used to provide the learner with real-life situation of how the pricing of a good or service (price ceiling) can affect the quantity demand, and the quality supplied. Throughout the simulation the learner is asked to price the rate of the two-bedroom unit. And based on the rate, you are given the results of your actions, and how it affected the market.
Through this simulation there were examples of microeconomics such as the government imposing a ceiling cap on monthly rental rates. To ensure the affordability for middle class workers also. In addition to GoodLife management deciding to offer month to month lease, and lower their rental price. In microeconomics you learn that decisions by both firms and individuals are motivated by cost and benefit considerations. Costs can be either in terms of financial cost such as average fixed costs and total variable cost (economics.about.com). We learned that macroeconomics deals with the structure and decision making of the economy as a whole (Colander, D.C. 2010). I think it is only fitting that I mention that all though most everything was consistent. However, we did see that the lower the rate of the apartment, the more of a demand.
One shift in the demand curve is the availability of the two bedroom units was in high demand. In part to the price declining and there being available renters. However, in the beginning as the apartments increase, so did the price. As we notice in the simulation when the rental demand is higher the price increases. However, when the quantity demands decrease, than there is an increase in the