This website uses cookies to ensure you have the best experience. Learn more

Eco/360 Supply And Demand Simulation Essay

1221 words - 5 pages

The purpose of this paper is to summarize the supply and demand simulation in Resource for ECO/360, answer the instructor's questions regarding the simulation, and provide a summary of the results of the simulation. After reading this paper, the audience should understand how the simulation helps the user to better comprehend how the market is affected by supply and demand.Content SummaryThe purpose of the simulation is to familiarize the user 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 supplied based on the market trends.Following the introduction, the user's first objective is to determine the monthly rental rate for two-bedroom apartments on temporary leases. The vacancy rate must be decreased while maximizing revenue. As the rental rate of the apartments is decreased, demand increases and results in a lower vacancy rate. According to the simulation, "As you lower the rental rate, revenue initially increases, reaches a maximum at a particular rental rate and quantity demanded, and then decreases." The key is to discover what rental rate offers the highest possible revenue with a low vacancy rate.At the next scenario, the supply curve is introduced to show the user what quantities a supplier would provide at various prices of the product. When the user increases the rental rate, more two-bedroom apartments are supplied. The higher the price a consumer is willing to pay for a product, the higher the quantity the supplier is willing to provide. Thus, the supply curve is an upward slope.The third situation calls for the user to decide the equilibrium monthly rental rate for two-bedroom apartments for temporary leases. In order to bring equilibrium to the quantity supplied and the quantity demanded, the Property Manager must lower the monthly rental rate to decrease the surplus of available apartments. When the quantity demanded and quantities supplied are equal, there is no need for the number of apartments or the rental rate to change.The fourth objective is to discover the direction of shift in the demand and supply curves. Due to an expanding population, the demand for apartments has decreased while the supply remains constant. Therefore, the demand curve shifts to the right. Since demand is greater than the quantity of apartments supplied, rental rates are increased. As rates are increased, demand decreases and supply increases. Eventually, as rental rates and supply increases while demand goes down, equilibrium is reached.The fifth scenario provides a situation in which the population's income increases and results in a decrease in demand for...

Find Another Essay On ECO/360 Supply and Demand Simulation

Supply and Demand Simulation Essay

879 words - 4 pages The University of Phoenix online simulation entitled "Applying Supply and Demand Concepts" starts with the description of a fictional small town, Atlantis, and the rental market for two bedroom rental apartments. Below we will discuss the key points of supply and demand covered in the simulation, and by David Colander in the Book Economics, along with real world examples and results for the simulation.In this simulation the reader is a property

Supply And Demand Simulation Essay

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

Supply and Demand Simulation

1205 words - 5 pages Supply and Demand Simulation Supply and demand plays an intricate role in the amount, price, and availability of products and services. The applying supply and demand concepts simulation guides users through making decisions for Goodlife, a management company for 2 bedroom apartments in Atlantis. The simulation names the user the property manager; responsible for vacation residents, new pricing for units, and advertising. The property manager

Supply and Demand Simulation

1389 words - 6 pages The University of Phoenix Applying Supply and Demand Concepts Simulation (University of Phoenix, 2009) demonstrated the mechanics of how supply and demand operates in today's market. The simulation used the housing market to show different scenarios and how demand and supply worked in these scenarios. This paper will discuss the simulation and how different environmental factors affect supply and demand and how this affects decision making. Four

Supply and demand simulation

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 Simulation - 729 words

729 words - 3 pages The purpose of this paper is to answer questions pertaining to applying supply and demand concepts presented in the week two simulation (University of Phoenix, 2004). The simulation provides a scenario in which the property management firm, GoodLife Management, experiences varying demand and supply situations due to population and personal preference changes.1. What causes the changes in supply and demand in the simulation?Initially, in an

Supply and Demand Simulation - 1104 words

1104 words - 4 pages University of PhoenixnThe simulation begins in a small, well cared for town called Atlantis. Most of the homes are either detached houses or apartments. In the simulation, I was a Property Manager for GoodLife Management. I had the opportunity to examine how supply and demand affect the price of rent required in order for the property manager to continue a positive cash flow.Causes of ChangeThere were several factors that caused a change to the

Supply and Demand Simulation - 692 words

692 words - 3 pages a profit decline. Vacationers may cancel or reschedule trips for a later date when prices drop.Some key points from the simulation tied to reading assignments are demand curve, supply curve, equilibrium, and price ceiling. Demand curve slants down and represents the concept that as price reduction occurs, demand increases. Supply curve slopes up and signifies increased supply as prices increase. Equilibrium occurs when supply and demand are

Supply and Demand Simulation - 1183 words

1183 words - 5 pages demanded exceeds quantity supplied and there is a shortage. Similarly, when prices are above that equilibrium level quantity supplied exceeds quantity demanded and there is a surplus. In this simulation, a new preference causes shifts in demand, supply, and the price ceiling.ReferenceUniversity of Phoenix. (2005). Applying Supply and Demand Concepts [Computer Software]. Retrieved on October 25, 2005, from University of Phoenix, Resource, Simulation, ECO360-Economics for Business 1 Web site: https://mycampus.phoenix.edu/secure/resource/vendors/tata/UBAMsims/economics1/economics1_supply_demand_simulation.html.

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

1333 words - 5 pages shift of the demand and supply curves which includes the determination of how equilibrium is re-established after the curves shift. The purpose of this simulation is to understand how the apartment market is affected by supply and demand.Decisions regarding supply, demand and market equilibrium require careful consideration. Many factors affect supply and demand such as preference, expectations, income, and rental rates. In order to make informed

ECO/360 Article Analysis: The Supply and Demand of Hybrid Vehicles

712 words - 3 pages Article Analysis: The Supply andDemand of Hybrid VehiclesThe purpose of this paper is to summarize the article, "Hybrid vehicles hot in state, but supply is limited" and explain why changes occurred in supply, demand, and price. After reading this paper, the audience should be able to understand why the hybrid is in high demand, why car manufacturers are receiving the asking price, and how supply and demand may affect the prices of hybrids in

Similar Essays

Supply,Demand, And Pricing Internet Article Eco/360

939 words - 4 pages translate preference and demand into increased pricing and growth rate seven days per week (p.16).ReferenceColander, D. C. (2004) Macroeconomics, 5th ed., Burr Ridge, IL: McGraw-Hill/Irwin. Retrieved October 10, 2007 from University Of Phoenix Resource, ECO/360-Economics for Business I site: https://ecampus.phoenix.edu/secure/resource/resource.aspFreitag, J. (2007 July 2). All-suite segment attractive to developers, travelers. Hotel & Motel Management, 222(12), 16. Retrieved October 12, 2007 from EBSCOhost database.Investopedia (2007) Financial terms-equilibrium. Retrieved October 13, 2007, from http://www.investopedia.com/terms/e/equilibrium.asp

Supply And Demand Simulation Essay

859 words - 3 pages the rent could not go above a certain price. The idea of the price ceiling was to provide and guarantee affordable housing. Demand and supply curves were also key points. When the demand curves slopes down, this represents a rent reduction. When the supply curve slopes up, this represents an increase in rent as the supply increases. The final key point was equilibrium. This is when supply and demand reaches a point where they are both even with each other.Reference:The McGraw-Hill Companies. University of Phoenix, Resource, ECO/360-Economics for Business I. from: https://ecampus.phoenix.edu/ secure/resource/resource.asp

Supply And Demand Simulation Essay 947 Words

947 words - 4 pages The Supply and Demand Simulation was an exercise in applying the supply and demand concepts of two bedroom apartments in the fictional city of Atlantis. Going through the simulator provided answers to the question of what caused the changes in supply and demand. Also, the decision making process was effected by the shifts in supply and demand as it pertains to the rental price and quantity of the two bedroom apartments. Four key points were

Supply And Demand Simulation Essay 945 Words

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