Demand Curve Simulation Essay

806 words - 3 pages

Supply and Demand Page PAGE 1 of NUMPAGES 4
This simulation helped familiarize this student with the demand curve, supply curve, equilibrium, and price ceiling. In the simulation, the user plays the part of Property Manager of GoodLife Management. GoodLife Management manages seven apartment complexes in Atlantis and is the only company that rents apartments; therefore it has a monopoly on the market. This means they can set the rental rate to any price they choose. Management also realizes that higher prices would keep some renters away creating less demand. In order to maintain a low percentage of unoccupied apartments, GoodLife has set a reasonable rental fee for their properties. As the Property Manager, duties include adjusting the monthly rental rate of two-bed rental apartments and the quantity supplied based on the market trends.As population increased, demand for apartments increased as well. GoodLife was able increase rental rate without sacrificing the number of occupied apartments. With the population boost, incomes raised as well. This led renters to become buyers, thus decreasing the demand for rental units. As a result, GoodLife needed to lower rent to attract more renters. In a further attempt to remain competitive, GoodLife renovated some apartments into condominiums. This allowed the company to reduce the supply of apartments that were in low demand.Increased population was an asset in the beginning. As population grew, it became a drawback as traffic, congestion, and rental rates escalated. The government set a price ceiling on two bedroom apartment rentals in an effort to allow families to find affordable housing. The demand for apartments was again disharmonious with the supply available.Presently, because of fluctuating gas prices, purchasing gasoline before weekends and holidays tends to save a few pennies at the gas pumps. The increase in the price of fuel may not be because of decreases in available resources, but rather the greed of the suppliers. Gas companies currently have a monopoly on the market, as alternative fuels are not fully competitive. This means consumers as a whole pay what the supplier demands. For those activities requiring consideration for gas prices, such as unnecessary travel, there may be a decline. In the consideration of larger or luxury purchases, it may be more prudent to wait for prices to drop rather than pay higher prices. Comparison-shopping and evaluations of need-versus-want provides guidance in situations where there is inequality in supply and demand.The key points from the simulation tied to...

Find Another Essay On Demand Curve Simulation

Supply and Demand Simulation Essay

945 words - 4 pages The purpose of the simulation is to familiarize a user with the demand curve, supply curve, equilibrium, and price ceiling. As a property manager for GoodLife Management in Atlantis, the responsibility for maintaining reasonable rental rates and quantity of apartments demanded involves several factors. Personal preferences, economy, income, and rental rates all affect the vacancy and occupancy ratios. Decisions regarding supply, demand, and

Supply and demand simulation Essay

1067 words - 4 pages In this essay the focus is on the Supply and Demand Simulation on the University of Phoenix online resource page for Economics. The questions that will be answered are the following:1). What causes the changes in supply and demand in the simulation?2). How do shifts in supply and demand affect your decision-making?3). List four key points from the reading assignment that were emphasized in the simulation.4). How can you apply what you learned

Supply and Demand – Good Life Property Management ECO 360, Economics for Business I

1333 words - 5 pages , quantity supplied, or revenue of the organization.The four key points from the reading assignments that were emphasized in the GoodLife simulation were:•Demand and supply - demand is downward sloping as quantity demanded increases price decreases which causes movement down the demand curve. Supply is upward sloping as quantity supplied increases. With an increase in price there is movement up the supply curve.•Equilibrium - is achieved when

International Trade Simulation

946 words - 4 pages International Trade Simulation"International trade is the exchange of goods and services between countries." (Heakal, 2007). International trade is helpful to the economy. The trade allows countries to exchange goods in order to have an assorted supply for the residents. The trade brings in supply which creates more demand and the economy grows.The international trade simulation shows the reasons for the international trade. The purpose of the

Supply and Demand Simulation Evaluation

1034 words - 4 pages AbstractThe simulation titled "Applying Supply and Demand Concepts" was an exercise in evaluating the way that supply and demand affect each other and change the curve and direction of the slope while keeping balance or equilibrium. The task was to complete the scenarios and evaluate how the changes in the demand and supply changed the way the company did business. The final task was to find a way that this information can be of use in my place

Supply and demand simulation

859 words - 3 pages The purpose of the supply and demand simulation was to help the class have a better comprehension of how supply and demand affects the market, particularly the housing market. This simulation familiarized the user by providing examples and real life situations on the supply and demand curves, price ceiling, and equilibrium. During this simulation, the user takes the role of a property manager for Goodlife Management, located in Atlantis

Economics - Price Elasticity of Demand

540 words - 2 pages The four key concepts in this simulation focused on the following:Price ElasticityThe percent change in demand quantity can be more or less than the change in its price. Relative elasticity/inelasticity of demand indicates whether the percent change in demand quantity is less than percent change in price. In the long-term, demand for any product tends to be more "price elastic" due to the availability of substitutes. Elasticity of Demand also

Differentiating between Market Structures

1019 words - 4 pages The structure of a market is defined by the number of firms in the market, the existence or otherwise of barriers to entry of new firms, and the interdependence among firms in determining pricing and output to maximize profits. This paper will cover the advantages and limitation of supply and demand identified in the simulation, the effectiveness of the organization, and how the organizations in each market structure maximizes profits.The

Applying the Learning Curve Theory

830 words - 3 pages Applying the Learning Curve Theory PAGE 1 Applying the Learning Curve TheoryIntroductionMario, owner of Mario's Pizzeria, opened his first pizza Parlor in 1950 in Palm Springs, California. Running and operating his store in one of the local and busy malls, Mario's pizzas became popular for its fresh ingredients and authentic taste. In the given Pizza Store Layout simulation, the students were given the opportunity to work as a manager for two

Supply And Demand Simulation

1271 words - 6 pages Supply and Demand Simulation PAGE \* MERGEFORMAT 1 Supply and Demand SimulationUniversity of PhoenixECO/365: Principles of MicroeconomicsOctober 26, 2009Supply and Demand SimulationIn the University of Phoenix simulation (2003), Applying Supply and Demand Concepts, a situation is presented concerning the supply and demand of two-bedroom rental apartments in Atlantis. Throughout the simulation scenarios are presented and choices must be made

Fiscal Policy

709 words - 3 pages real income, the simulation showed me that when I had real income unemployment decreased, and that's a good thing. The Aggregated Demand is the sum of all expenditures at different price levels, and the Aggregated Demand Curve is the curve that shows the Aggregated Demand at each price level. I had a better understanding of this after the simulation, being able to move change the curve and see what type of impact it had on the economy was

Similar Essays

Applying Supply And Demand Essay

712 words - 3 pages in the simulation are driven by the availability of the rental apartments, the demand for the rentals, the number of available renters, and the price. According to the simulation, a demand curve is downward sloping. In the simulation, as the price decreased, demand increased. The supply curve, on the other hand, is upward sloping. The quantity of two-bedroom apartments increased as the price increased. A surplus in the market for the apartments

Eco/360 Supply And Demand Simulation Essay

1221 words - 5 pages with the demand curve, supply curve, equilibrium, and price ceiling. The simulation begins by introducing the user to the fictional town, Atlantis. In the simulation, the user plays the part of Property Manager of GoodLife Management in Atlantis. GoodLife Management manages seven apartment complexes in Atlantis and it is the Property Manager's duty to adjust the monthly rental rate of two-bed rental apartments and the quantity of apartments

Supply And Demand Simulation Essay

1205 words - 5 pages down, and likewise if the demand goes down the price goes up as long as all other things are constant. A shift in the demand curve indicates something is not constant. In the simulation, a company named Lintech expanded its operations to Atlantis. The expansion increased the population of Atlantis changes the demand for apartments, but does not change the supply of apartments in the area. The sudden shortage of apartments created a demand curve

Supply And Demand Simulation Paper

1195 words - 5 pages increases as the price decreases. The demand curve for any product is an imaginary line at a point in time. This tells one the quantities consumers would demand at various prices of the product (Colander, 2004, p.93).The changes in the supply and demand simulation are caused by the student's input according to the supply and demand factors of that particular scenario which then leads to less revenue for the company or less occupancy of the rental units