In this essay we will discuss about Microeconomics and Macroeconomics. After reading this essay you will learn about: Meaning of Microeconomics 2. Scope of Microeconomics 3.
To complete the simulation, the user must assume the role of a Property Manager for GoodLife Management, a property Macroeconomics eco360 essay firm that manages seven apartment complexes within Atlantis.
As the Property Manager, the user must adjust rental rates as changes in supply and demand require or determine how many units to supply when rates become limited. The Supply and Demand Simulation UoP, emphasizes several economic principles outlined by Colander in his book, Economicsincluding the laws of demand and supply, equilibrium, the effect of a price ceiling, and shifts in demand and supply.
Laws of Demand and Supply In the Year One scenarios, the simulation UoP, demonstrates how rental rates affect the supply and demand for apartment units.
In other words, price affects the supply and demand of available goods. The law of demand states that quantities demanded by consumers will increase as prices of a product decrease and the reverse is also true, quantities demanded by consumers will decrease as prices of a product increase, as long as all other factors remain constant.
A demand curve shows an inverse relationship between the price of a product and how much of that product is demanded by consumers Colander, So the demand for GoodLife's apartments will increase if GoodLife reduces the rental rate.
The law of supply states that quantities supplied will increase as prices increase and decrease as prices decrease, as long as all other factors remain constant. The law of supply represents a direct relationship between prices and quantities supplied to consumers Colander, This means that GoodLife will increase the number of apartments supplied if rental rates increase.
Equilibrium In the Year Three scenario, the simulation UoP, also shows how a market strives to achieve equilibrium, where quantity supplied and quantity demanded meet at an equilibrium price.
If rental rates are below the equilibrium point then the number of apartments demanded exceeds the amount supplied causing a shortage of apartments. The apartment shortage exerts an upward pressure on rates Online Texts. The increase in rates will then reduce the quantity of apartments demanded and raise the quantity supplied.
The back and forth process of supply and demand following price will continue until equilibrium is achieved Colander, If the scenario is reversed and the rental rate is above the equilibrium point then the number of apartments supplied exceeds the number demanded which causes a surplus in the market.
The surplus will exert a downward pressure on rental rates which will increase the quantity demanded and reduce the quantity supplied Online Texts. Once again, this adjustment process will move quantities supplied and demanded back and forth to counter balance rising and falling rates.
Sooner or later, both rates and quantities will reach a balance, this is the equilibrium point, but equilibrium can only be achieved temporarily or within an economic model, because multiple factors affect the market and these factors are constantly changing Colander, The Effect of a Price Ceiling One factor that can work against a market trying to reach equilibrium is a price ceiling.
A price ceiling is a law requiring that a price for a certain good be kept below some level which may lead to shortage and a black market BizEd, The scenario in Year Nine illustrates how a price ceiling disturbs supply and demand changes. In the simulation UoP,the government has imposed a price ceiling on apartments in order to help middle-income families find affordable housing in Atlantis.
The low rental rate increases the demand for the apartments; however, at this rental rate, GoodLife is not willing or able to lease the number of apartments that the company would be willing or able to lease out at a higher rental rate.
The preceding situation leads to a shortage in the apartment market of Atlantis.Supply and Demand Simulation Essay Words | 3 Pages. Supply and Demand Simulation Summary University of Phoenix ECO, Economics for Business I The Supply/Demand simulation involves acting as property manager for GoodLife Management in the fictional town of Atlantis.
GoodLife Management manages seven apartment complexes in Atlantis. We have compiled a short list of microeconomics paper topics to help you decide which one suits you best. Check them out! As a more developed science than macroeconomics, microeconomics studies the economic tendencies, predicts what will happen when individuals make certain buying decisions, and how it will impact the .
Supply and Demand Simulation Summary University of Phoenix ECO, Economics for Business I The Supply/Demand simulation involves acting as property manager for GoodLife Management in the fictional town of Atlantis. GoodLife Management manages seven apartment complexes in Atlantis.
ECO Dept. Info University of North Carolina at Greensboro's ECO department has 23 courses in Course Hero with documents and answered questions.
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In this essay we will discuss about Microeconomics and Macroeconomics. After reading this essay you will learn about: 1. Meaning of Microeconomics 2.