supply and demand
Supply and Demand Simulation ECO/365 Shyesta Kennedy
The simulation of supply and demand for this assignment was using Atlantis apartment building rental showing a detailed analysis if how any changes to the rental availability can and will affect the manager decision on price and quality in the market. In this simulation you will see the analysis point out the effect of supply and demand and how it can and needs to reestablishment of price equilibrium. Comparing the real world scenario to any supply and demand it will reveal main details of microeconomics and macroeconomics equilibrium, supply and demand shifts, also it will show the effects of elasticity in business pricing strategies.
Microeconomics
There were a few microeconomics in the simulation. What microeconomics analyzes individual firm’s choices just as they relate to the whole economy basically influenced by any economics forces such as all the household buying decision (Colander, 2010). Now in the scenario where 2,500 apartments units are desiring to have a certain amount for each unit for rent to make it full capacity, the price consumers are even willing to pay the consideration cost of the apartment cost. The consideration shows just how consumers make decisions that will contribute to supply and demand which will illustrates a microeconomic concept. In some cases there are some company that would look at certain ways to increase their production so that they can decrease their prices compared to their competitors in a way this could help adjust the equilibrium prices. Allowing the company to pass price saving to any consumers.
Macroeconomics
Macroeconomics looks at the aggregate that needs to be determined how breaking down individual components influences the economy which considering inflation, unemployment, business cycles, and growth (Colander, 2010). Macroeconomics is mostly used when the economy changes such as with
The simulation of supply and demand for this assignment was using Atlantis apartment building rental showing a detailed analysis if how any changes to the rental availability can and will affect the manager decision on price and quality in the market. In this simulation you will see the analysis point out the effect of supply and demand and how it can and needs to reestablishment of price equilibrium. Comparing the real world scenario to any supply and demand it will reveal main details of microeconomics and macroeconomics equilibrium, supply and demand shifts, also it will show the effects of elasticity in business pricing strategies.
Microeconomics
There were a few microeconomics in the simulation. What microeconomics analyzes individual firm’s choices just as they relate to the whole economy basically influenced by any economics forces such as all the household buying decision (Colander, 2010). Now in the scenario where 2,500 apartments units are desiring to have a certain amount for each unit for rent to make it full capacity, the price consumers are even willing to pay the consideration cost of the apartment cost. The consideration shows just how consumers make decisions that will contribute to supply and demand which will illustrates a microeconomic concept. In some cases there are some company that would look at certain ways to increase their production so that they can decrease their prices compared to their competitors in a way this could help adjust the equilibrium prices. Allowing the company to pass price saving to any consumers.
Macroeconomics
Macroeconomics looks at the aggregate that needs to be determined how breaking down individual components influences the economy which considering inflation, unemployment, business cycles, and growth (Colander, 2010). Macroeconomics is mostly used when the economy changes such as with
References: Colander, D.C. (2010). Economics (8th ed.) New York: McGraw –Hill University of Phoenix – Supply and Demand simulation