...only company that rents apartments within the town. They currently have a vacancy rate of 28 percent. The principles of macroeconomics as well as microeconomics can help them understand and decrease the vacancy rate to 15 percent. It is important for the company to understand the shifts in the supply and demand curves. The rental company can be more successful if they know when to raise or lower the rent. Understanding that economics plays a large role in everyone’s environment will help people and companies be more successful.. Supply and Demand Simulation In the simulation, it is made apparent how often people must deal with the principles of macroeconomics and microeconomics. Every single person is affected by supply and demand. Understanding these aspects of economics will allow people to have a better grasp on the when’s, why’s, and where’s of making purchases in their everyday lives. In addition, understanding the price elasticity of demand can also help a person to understand the importance of how lower and higher demand can have a direct impact on prices. Macro and Microeconomic Principles Supply and demand are the two microeconomic principles that appear in this simulation. When discussing the rental apartments in Atlantis, the simulation discusses the supply and demand associated with them. Macroeconomic principles also appear in the simulation. These principles relate more to the adjustments occurring in the population flow...
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...Microeconomics and the Laws of Supply and Demand Terry Cerami ECO/365 September 21, 2015 David Flesh Microeconomics and the Laws of Supply and Demand Utilizing the supply and demand simulation ("University Of Phoenix", 2014), I will illustrate two macroeconomic and two microeconomic principles demonstrated in the simulation and expound on why these principles are categorized as microeconomic or macroeconomic. Also, one shift of the demand curve and one shift of the supply curve from the simulation will be identified with explanations for the shifts. Further, I will analyze the influence on decision making in correlation with quantity and the equilibrium of price and how these concepts of demand and supply can be pragmatic in everyday business or within the current work environment. Finally, I will explain how price elasticity of demand has an immense impact on products pricing strategy and its purchase from the consumer. Macroeconomic and Microeconomic Principles The first macroeconomic principle demonstrated within the Supply and demand Simulation is Price Ceilings. Price Ceilings ensue through legislation as laws are enacted establishing a lawful ceiling of how high the cost of a product can be ("Price Ceilings", n.d.). When a price ceiling is established, there is further demand than what is available at the equilibrium price. This is a result of there being a sufficient supply in quantity of demand than supplied quantity. For example, in the simulation the...
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...Supply and Demand Simulation Sandra Torrey ECO/365 February 24, 2014 Bert Wheeler Supply and Demand Simulation Supply and demand can happen in either real life situations or at the work place or both. When certain things happen with supply and demand there can be a shift in the supply and demand curve, which will be explained. Another item that can be impacted is the equilibrium price on decision making and on quantity. These will be analyzed as well. Supply and demand can be influenced by the movements that are associated with both macroeconomics and microeconomics and also influenced by the equilibrium price and quantity. Price electricity of demand also has an impact on the consumer’s purchasing and on the pricing strategy of the company. All these items were either shown or demonstrated in the simulation online in a city called Atlantics and this is how I see them. Macroeconomics and Microeconomic Principles Supply and demand of apartments being rented in Atlantics are the two microeconomic concepts that are present in the simulation. On the other hand, at macroeconomic level, there were changes in population trends when it came to choosing to rent or not to rent apartments as well as factors that influenced these changes. According to Colander (2010), the law of the demand says that quantity demanded increases as price falls, other things constant. The law of supply asserts that the quantity supplied decreases as price falls, other things constant. The supply...
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...Youssef Supply and demand One of the most basic concepts of economics is Supply and Demand. These are really two separate things, but they are almost always talked about together. Supply is how much of something is available. For example, if you have 9 baseball cards, then your supply of baseball cards is 9. If you have 6 apples, then your supply of apples is 6. Demand is how much of something people want. It sounds a little bit harder to measure, but it really isn't. To measure demand, we can use a very simple numbering system, just like the supply one. If 8 people want baseball cards, then we can say that the demand for baseball cards is 8. If 6 people want apples, then we can say that the demand for apples is 6. Is supply and demand from the key concepts of Economics, is the backbone of a market economy, Where the application refers to first kilometers (quantitative) for a product or service that is requested by the buyer. And quantity is the quantity that the superpower individuals willing to purchase being saturated needs and desires, for a given price. And the relationship between the price of the product and the quantity of the product to be purchased. The offer represents a market which offers kilometers available quantity indicating the amount of a certain commodity, Where producers are willing to supply. The relationship between price and service or product provided to figure out the relationship and the price is a reflection of supply and demand. * The Law of Demand ...
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...Unit 1 - Individual Project - Introduction to Macroeconomic Theory Click Link Below To Buy: http://hwcampus.com/shop/unit-1-individual-project-introduction-macroeconomic-theory/ Assignment Details Assignment Description Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time. In economics, they say a picture is worth a thousand words. Below, you will find two scenarios. Your assignment is to discuss the situation by writing the solutions, and then show the solutions and how you got here in one or more graphs or flowcharts. Scenario One Supply and demand are foundational concepts in understanding economic theory. Whether you are a coffee drinker or not, you have been tasked to examine the impact of supply and demand when dealing with the coffee retail industry. A few companies probably come to mind. Pick a major coffee retailer, and then contemplate what has been happening to both the supply and demand for this product. Next, analyze the following scenario that deals with what happened in the coffee industry at the beginning of the last decade: In the early part of the last decade, there was an overproduction of coffee. The price dropped so low that producers' costs were higher than the market price. The reason this happened was that market prices...
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...Unit 1 - Individual Project - Introduction to Macroeconomic Theory Click Link Below To Buy: http://hwcampus.com/shop/unit-1-individual-project-introduction-macroeconomic-theory/ Assignment Details Assignment Description Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time. In economics, they say a picture is worth a thousand words. Below, you will find two scenarios. Your assignment is to discuss the situation by writing the solutions, and then show the solutions and how you got here in one or more graphs or flowcharts. Scenario One Supply and demand are foundational concepts in understanding economic theory. Whether you are a coffee drinker or not, you have been tasked to examine the impact of supply and demand when dealing with the coffee retail industry. A few companies probably come to mind. Pick a major coffee retailer, and then contemplate what has been happening to both the supply and demand for this product. Next, analyze the following scenario that deals with what happened in the coffee industry at the beginning of the last decade: In the early part of the last decade, there was an overproduction of coffee. The price dropped so low that producers' costs were higher than the market price. The reason this happened was that market prices...
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...Microeconomics and the Laws of Supply and Demand To purchase this visit here: http://mindsblow.us/question_des/MicroeconomicsandtheLawsofSupplyandDemand/2779 Contact us at: help@mindblows.us Complete one of the following options: Option 1: Complete the Supply and Demand Simulation. Write a 1,050- to 1,400-word paper summarizing the content of the simulation and address the following: Identify two microeconomics and two macroeconomics principles or concepts from the simulation/video. Explain why you have categorized these selected principles or concepts as microeconomics or macroeconomics. Identify at least one shift of the supply curve and one shift of the demand curve in the simulation/video. Explain what causes the shifts, and how each shift affects the price, quantity, and decision making. Include responses to the following: How might you apply what you learned about supply and demand from the simulation/video to your workplace or your understanding of a real-world product with which you are familiar? How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on equilibrium price and quantity? How do the concepts of macroeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity? How does the price elasticity of demand affect a consumer's purchasing and the firm's pricing strategy as it relates to the simulation/video? Cite a minimum of 3 peer...
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...9/26/2012 Lecture 1 – Introduction to Macroeconomics • Key concepts of macroeconomics Key concepts of macroeconmics • Macroeconomics is the study of the behavior of the economy as a whole. • Aggregate demand and supply What is an economy? -> Google images search: Vietnam Economy • Economy: An economy consists of the economic systems of a country, which allocate the labor, capital, and land resources for manufacturing, production, trade, distribution, and consumption of goods and services. 1 9/26/2012 • Macroeconomics: examines overal level of national income, employment, and prices of an economy. 1. National output/income: total output of an economy is Gross Domestic Product (GDP) 2. Employment: Labor force includes all employed persons and those unemployed individuals who are seeking jobs. 3. Stable prices: consumer price index (CPI), inlfation rate Why national income? • The ultimate objective of economic activity is to provide the goods and services that the population desire. e.g. shelter, foods, education, recreation • • The most comprehenshive measure of the total output in an economy is the gross domestic product (GDP). GDP is the measure of the market value of all final goods and services produced in a country during a year. Gross domestic product growth rate 12 10 8 6 4 2 0 -2 • Why some countries are rich, while others are poor? • Size of GDP? GDP growth rate? • What factors...
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...The purpose of this paper is to discuss the Supply and Demand simulation from the student website. The idea is to identify two microeconomic and two macroeconomic principles present in the simulation and to explain why these principles are categorized as macro or microeconomic. The paper will also determine one shift of the supply curve and one shift of the demand curve from the simulation, as well as why these shifts happen. Their impact on the equilibrium price, on decision making, and on quantity will be also analyzed. Then, it will refer to ways in which concepts about supply and demand can be applied in a real life-situation or in the workplace. The paper will also refer to ways in which concepts of micro and macroeconomics help in understanding factors that influence movements in supply and demand on the equilibrium price and quantity. Last, the paper will refer to how the price elasticity of demand has an impact on the consumer’s purchasing and on the pricing strategy of the company. Macro and Microeconomic Principles Two microeconomic concepts that are present in the simulation are: supply and demand. The simulation talks about supply and demand or rental apartments from Atlantis. On the other hand, at macroeconomic level, we can talk about the changes in population trends when it comes to choosing to rent or not to rent apartments as well as factors that influence these changes. According to Colander (2010), the law of the demand says that quantity demanded increases as...
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...Supply and Demand Concepts at Work: Goodlife Management Company Microeconomics and Macroeconomics at Work The two microeconomic concepts at work in the simulation were the law of demand and supply. According to the law of demand, more quantities of a product or service will be bought at lower prices than at higher. As the Goodlife Management Company lowered their rental rate, their vacancy rate decreased thus indicating there was an increase in demand as the prices were lowered. According to the law of supply, as the price of a product or service increases, supply of that product or service increases. As the Goodlife Management Company, raised their rental rates, they leased more apartments since they were valued at a higher price. Shifts in the Supply and Demand Curve There was a shift in the demand curve when Lintech Inc. moved their business into the city of Atlantis resulting in an increase in population and thus an increase in demand for Goodlife Management’s apartments. Due to the shift of demand for apartments due to the increase in population, the equilibrium price and quantity will also increase. Thus, Goodlife will lease more apartments at a higher price due to the increase in demand and equilibrium price. There was a shift in the supply curve when Goodlife Management converted some of their two bedroom apartments into condominiums due to the sustained decrease in demand for apartments as the population’s income increased. Due to the shift of supply of apartments...
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...Microeconomics and the Laws of Supply and Demand ECO/365 October 15, 2014 University of Phoenix Microeconomics and the Laws of Supply and Demand This assignment calls for the students to complete the Supply and Demand web simulation. The simulation is about a property management firm called Goodlife Management, who owns apartment complexes in the city of Atlantis. The simulation provides a number of different scenarios both covering information that we learned about microeconomics and macroeconomics. Identify two microeconomics and two macroeconomics principles or concepts from the simulation. Explain why you have categorized these principles or concepts as microeconomics or macroeconomics. Microeconomics affects the immediate supply and demand of the company. In the first scenario, GoodLife has 2,000 apartments in its apartment complexes, with a 28% vacancy rate. Susan recommends reducing the rate to 15% while maximizing revenue. We achieved this goal by reducing the rental rate, getting more occupants to move in the apartments, which maximized our revenue. The next scenario, GoodLife has 2,500 apartments available on a temporary month-to-month basis at the rate of $1,100. Susan suggests that we lease out all 2,500 apartments. Though possible to lease all apartments, we are unable to do so at the current rental rate due to the fact that maintenance cost will rise as the tenant and apartment rate rise. So, we raised the rental rate to $1,550 to compensate for...
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...501/ Forces Influencing the 21st Century Mr. Frank Kingsland May 21, 2011 |Concept |Personal Example |Reference to Concept in Reading | | | | | |Microeconomics |In the natural gas market, gas is in supply all year round. |Microeconomics is a measure of | |The branch of economics that analyzes the |Natural gas to heat people’s homes is in increases in demand |specific economic units, which are an | |market behavior of individual consumers and|in the winter time. The supply could eventually run low |individual industry, firm, or | |firms in an attempt to understand the |depending upon where Shell gets its gas from. Natural gas is |household. | |decision-making process of firms and |in less demand in the summer time. There is no control over if| | |households. It is concerned with the |the price of a therm may go up anytime with People’s Gas. I |We measure | |interaction between individual buyers and |worked for Just Energy for one week last year in June and quit|The price of a specific product, the | |sellers and the factors that influence the |because they wanted to charge customers’...
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...Microeconomics and the Laws of Supply and Demand ECO/365 Microeconomics and the Laws of Supply and Demand Introduction Supply and demand dictates business and determines if a business is going to be successful or not. It is also a key part of the microeconomic and macroeconomic settings in a company. This week’s simulation showed how an apartment company in the city of Atlantis is affected by the business decisions of the company and the economic factors that are going on around them. The microeconomic concepts that can be pulled from the simulation are the changes in the supply and demand of their two bedroom apartments which the company is trying to adjust. The macroeconomic concepts that can be pulled from the simulation are the price elasticity and the price ceiling that the government has set because this has an effect on the area as a whole. Both of these economic factors play a key role in business and how a business has to adapt to the changes in the economic structures around them. The Simulation The simulation brought to the light and showed that a shift in the supply curve or the demand curve or both curves could cause major changes in the economic environment of the economy around them and the company as a whole. The simulation showed that there was a demand for property, especially when Lintech Inc. moved into the area. There was a huge demand for the apartments and this caused Good life management to adjust prices to compensate for the demand to remain profitable...
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...Microeconomics and the Laws of Supply and Demand Anthony Sanders ECO/365 June 29, 2015 Ronald Merchant Microeconomics and the Laws of Supply and Demand For the Supply and Demand Simulation, is about the apartment complex Goodlife in Atlantis, which is the only company that rents out apartments. The purpose of the simulation is to examine two microeconomics and macroeconomics concepts, determine how shifts in the supply and demand curve effects equilibrium, decision making, quantity supplied, and prices the apartments being rented. To begin, an example of two microeconomic concepts is the Law of Supply and Demand because these laws examine the behavior of individuals and how they allocate their resources. For the Law of Supply, the higher the price of a good will increase the amount supplied because suppliers want to make as much revenue. However, the opposite happens if the price of a good decreases. When the price goes down, suppliers do not make as much money on each service or good sold so the quantity supplied decreases. This is what happened when the rental ceiling was enforced at the rate of $1550. Supply of apartments decreased to 2275, leaving a shortage of 875. The second concept is the Law of Demand, which states that the lower the price is, the higher quantity demanded. The two macroeconomic concepts are price elasticity and price ceilings because it deals with the behavior and decision-making for the overall economy. Price elasticity...
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...Article Analysis University of Phoenix ECO / 365 Liliana Fargo November 1, 2009 Article Analysis Many consumers purchase products to use them because they like the product, it fits their lifestyle or just for the simple fact of it being affordable. The consumers hardly ever look at the purchase habits of other consumers that is the company’s job to do. There are many facets that a company has to look at, such as the trends and consumption patterns of the consumers that consumers are not too aware of. Taking all of this into consideration, the purpose of this paper will be to define economics, define microeconomics, define law of supply, as well as define the law of demand, ad to also identify the factors that lead to a change in supply and a change in demand. What is economics? Economics is more than just the “economy.” Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society (Colander, 2008). Merriam-Webster defines economics in a simpler way as a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services (2009). The key word in the definition given by Colander is coordinate. In the study of economics there are three central coordination problems any economy must solve, which are: what, and how much, to produce; how to produce it; and for whom to produce it...
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