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Supply and Demand Simulation
ECO/365
July 31, 2013
Robert Watson

Supply and Demand Simulation
This paper is about the supply and demand simulation from University of Phoenix student website. The simulation is about Good life Management, a real estate property management company that controls the seven apartment complexes in the city of Atlantis. In the nine-year period in the simulation the housing market has increased and decreased because of businesses moving into the area bringing an increase in job market, the change in company expectations and consumer preferences, and the policy changes implemented by the government (University of Phoenix website, 2013). Identifying the two microeconomic and two macroeconomic principles present in the simulation and to explain why these principles are categorized as microeconomic or macroeconomic. The supply and demand was affected by decreasing the rent to lower the vacancy percentage and maximize revenue for the company. This moved is considered a temporary fix on a month-to-month basis and a good example of microeconomics. Another example of microeconomics is when the new company came into town and caused an increased in the population along an increased in the job market. The population and job increase suggest they increase rental rates in response to the increase in demand. An example of macroeconomics is the survey showing that individuals working in Atlantis are living in neighboring cities because of the cost of rent is less. Another example of macroeconomics is when the government steps in and puts a ceiling of $1550 on monthly rent for two-bedroom apartments so that middle-class families can afford to live in the city in which they work. This caused the company to rent only a portion of their apartments to make a profit because of the maintenance cost (University of Phoenix website, 2013). To determine one

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