Microeconomics and the Laws of Supply and Demand
Microeconomics and the Laws of Supply and Demand
ECO/365 Principles of Microeconomics
August 18, 2014
Sam Pirnazar
Microeconomics and the Laws of Supply and Demand
Abstract
The objective of the laws and the supply and demand simulation is to apply the supply and demand concepts to provide a better understanding on how to use the curves in order to figure out the equilibrium in the market for leasing two bedroom apartments. The simulation will help determine the difference between the movement along and shift of the demand and supply curves. Furthermore, how equilibrium can be established after one or both curves shift will be provided.
Microeconomics and Macroeconomics Concepts Microeconomics focuses more on the individual choices consumers make that become influenced by economic factors (Colander, 2013). Macroeconomics focuses on the entire economy rather than just an individual (Colander, 2013). However, both are very interrelated when discussing the economy. The microeconomics and macroeconomics concepts that the simulation introduced were supply and demand, shifts in supply and demand, equilibrium, and price ceiling. Microeconomics deals with supply and demand and equilibrium, while macroeconomics deals with the shifts in supply and demand and price ceiling. The microeconomics concepts are used in the simulation by pricing policies of firms through GoodLife Management and how it affects buyer’s decisions in the market for leasing two bedroom apartments. The macroeconomics concepts are used in the simulation to show aggregate relationships such as how the pricing for leasing two bedroom apartments and affordability affect the economy and its growth.
Shift of Supply and Demand Curves There were various types of shifts of the supply curve and demand curve. One shift of supply curve happened when the quantity supply was increased and this reflects the cost of leasing apartments. There was a change
ECO/365 Principles of Microeconomics
August 18, 2014
Sam Pirnazar
Microeconomics and the Laws of Supply and Demand
Abstract
The objective of the laws and the supply and demand simulation is to apply the supply and demand concepts to provide a better understanding on how to use the curves in order to figure out the equilibrium in the market for leasing two bedroom apartments. The simulation will help determine the difference between the movement along and shift of the demand and supply curves. Furthermore, how equilibrium can be established after one or both curves shift will be provided.
Microeconomics and Macroeconomics Concepts Microeconomics focuses more on the individual choices consumers make that become influenced by economic factors (Colander, 2013). Macroeconomics focuses on the entire economy rather than just an individual (Colander, 2013). However, both are very interrelated when discussing the economy. The microeconomics and macroeconomics concepts that the simulation introduced were supply and demand, shifts in supply and demand, equilibrium, and price ceiling. Microeconomics deals with supply and demand and equilibrium, while macroeconomics deals with the shifts in supply and demand and price ceiling. The microeconomics concepts are used in the simulation by pricing policies of firms through GoodLife Management and how it affects buyer’s decisions in the market for leasing two bedroom apartments. The macroeconomics concepts are used in the simulation to show aggregate relationships such as how the pricing for leasing two bedroom apartments and affordability affect the economy and its growth.
Shift of Supply and Demand Curves There were various types of shifts of the supply curve and demand curve. One shift of supply curve happened when the quantity supply was increased and this reflects the cost of leasing apartments. There was a change