* * * * * * * * * * Supply & Demand Simulation * Anthony Ford Jr. * ECO-365 * APRIL 14th, 2014
Joe Krupka * * * * * * * * * * Introduction
Microeconomics involves the study of individual economic agents and individual markets. Macroeconomics involves the study of economic aggregates. Supply and demand is the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price. The concepts were well displayed during the supply and demand simulation.
For example, the competition that Oakridge Builders provided was a microeconomic concept. The same can be said for GoodLife having a monopoly on selling apartments. Economic competition takes place in markets--meeting grounds of intending suppliers and buyers. Typically, a few sellers compete to attract favorable offers from prospective buyers. This is why it is a microeconomic concept. * A monopoly is an enterprise that is the only seller of a good or service. In the absence of government intervention, a monopoly is free to set any price it chooses and will usually set the price that yields the largest possible profit. Just being a monopoly need not make an enterprise more profitable than other enterprises that face competition: the market may be so small that it barely supports one enterprise (University of Phoenix, 2010). * A price ceiling is a legally mandated maximum price. The purpose of a price ceiling is to keep the price of a good below the market equilibrium price. Rent controls and regulated gasoline prices during wartime and the energy crisis of the 1970s are examples of price ceilings. This was installed by the Atlantis government. This is an example of macroeconomics. An effective price ceiling results in a shortage of a