Supply and Demand Simuation
ECO/365
May 7, 2012

In this scenario the supply and demand simulation was based on the management of rental apartments by Good Life Management. The apartments are in Atlantis city and this scenario will include changes in supply and demand. In this scenario it’s showed how supply, demand and price elasticity can affects decision making of the consumer and also organization. Atlantis is a very small city with a lot of activities, low issues with traffic, pollution and crime in this scenario Atlantis is like heaven on earth for people who live there. Atlantis has a number of options for housing both detached and apartments.
Causes for Change in Supply and Demand
One of the causes for changes in supply and demand in the simulation is availability of two-bedroom rental apartment, demand for those rentals, the quantity of available rent4ers, and of course monthly price . Because market in Atlantis is monopolized it directly affected prices of apartments to become higher. Due to above mentioned reason Goodlife Management is forced to expand their services. Only by doing that Goodlife Management can meet higher level of aggregate demand. Like I mention monopolized market in Atlantis produced Goodlife as only management company, an increase in demand for apartments, but not any apartments they offer affordable apartments so increase in demand leads in expansion of aggregate supply in the economy.
The four key points that the reading and simulation highlighted were aggregate supply, aggregate demand, supply curve and equilibrium. Like we said an increase in demand of affordable apartments must direct to an expansion of aggregate supply in the economy.
According to Investopedia I will try to explained these two, a Forbes Media Company, supply curve is basically a graph showing the hypothetical supply of a product of service that would be