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

Supply And Demand Simulation Essay

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 attempt to drive up the rental rate, GoodLife Management withholds a portion of available apartments creating an environment of scarcity. There is also a decline in apartment demand as there is a shift in individual preference to detached housing. To accommodate and capture these consumers, GoodLife Management converts a portion of existing apartments into condominiums again creating a scarcity of apartments. However, as new businesses arrive in Atlantis and there is a decrease in availability due to apartment-to-condominium conversion, the demand exceeds the supply. An additional factor affecting consumer demand for apartments is attributable to lower available housing in neighboring towns.2. How do shifts in supply and demand affect your decision-making?Any affects would depend on immediate need and considerations in the decision-making process. 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, which 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. For example, when Digital Video Disk (DVD) players first hit the market in 1997, the price was approximately $490, but as demand and competition increased prices in 2004 are now around $109 (Consumer Electronics Association, 2006). Comparison-shopping and evaluations of need-versus-want provides guidance in situations where there is inequality in supply and demand.3. List four key points from the reading assignments that were emphasized in...

Find Another Essay On Supply and Demand Simulation

Supply and Demand Simulation Essay

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 Essay

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

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 - 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 Simulation Paper

1195 words - 5 pages A supply and demand simulation was conducted online for each student to complete which referred to a company named Good Life which is a property management company. The simulation was based on the renting of apartment units to potential tenants regarding the supply and demand factors. Each student was a property manager and was to complete the simulation with an outcome of an understanding of the supply and demand situation and how the economy

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

ECO/360 Supply and Demand Simulation

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

Supply and Demand of Rental Apartments Simulation

800 words - 3 pages This paper examines the economic factor at work in supply and demand of rental apartments in the city of Atlantis. Acting as the property manager for GoodLife Management in Atlantis, the simulation asks the user to make pricing and supply decisions based on changes in the market. Changes in price, population, average salaries, tastes, and government regulations all affect the market in a number of ways.Decisions affected by Changes in Supply and

Similar Essays

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

Supply And Demand Simulation Essay

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

Supply And Demand Simulation Essay 879 Words

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