Supply And Demand Simulation: Macro And Microeconomics

Supply and Demand Simulation

Supply and Demand Simulation
MACRO AND MICROECONOMICS Two principles of macroeconomics are local income and housing market growth in the town of Atlantis. I chose these because if the people of Atlantis’ have low income, they will not be able to pay for apartments in the area that have high rent. This would hinder the housing and apartment complex growth in the area because there would be no economic support. Two principles of microeconomics are the choice to rent an apartment or buy a house and the pricing decisions made by Good Life Management. I chose these two principles because they both deal with individual choices that affect their local economic dynamics,
The invisible hand theorem wad demonstrated in the simulation because through changing rental rates, Good Life Management could efficiently allocate apartments available, except in a case of a surplus in demand. An individual’s housing choice affected the equilibrium price and quantity because if they chose to not rent apartments due to the rental price, the available apartments increased and Good Life Management had to lower their rental price to lower their vacancy rate. EQUILIBRIUM PRICE AND QUANTITY-MACROECONOMICS The concepts of macroeconomics helped me understand the factors that affect the supply and demand on the equilibrium price and quantity because the local economic condition can steer them in whichever direction applies. For example, Atlantis’ economic condition was stable in the simulation. This means that people made enough money and at one point, the income increased. This means that the equilibrium price could increase and the quantity of apartments would remain the same because Atlantis’ residents could pay the rental rate.
PRICE OF ELASTICITY