Essay about Microeconomics and the Laws of Supply and Demand

798 Words Nov 6th, 2014 4 Pages
Microeconomics and the Laws of Supply and Demand
ECO/365
October 15, 2014
University of Phoenix

Microeconomics and the Laws of Supply and Demand
This assignment calls for the students to complete the Supply and Demand web simulation. The simulation is about a property management firm called Goodlife Management, who owns apartment complexes in the city of Atlantis. The simulation provides a number of different scenarios both covering information that we learned about microeconomics and macroeconomics.
Identify two microeconomics and two macroeconomics principles or concepts from the simulation. Explain why you have categorized these principles or concepts as microeconomics or macroeconomics. Microeconomics affects the immediate
…show more content…
What causes the shits? Going back to the first two scenarios, the first scenario best represents the demand curve. There were a surplus in vacant apartments, so the rental rate was decreased in order to increase the number of units rented out. As the rental rate goes down, the vacancy rate goes down. This scenario shows the demand curve shifting downward. The second scenario shows the supply curve shifting upwards due to the rental rate increase once maximum vacancy was reached. The shortage in the supply will always result in a price increase.
I would apply the information learned from this simulation to a workplace in the fashion industry. As discussed in class last week, the more of a demand and supply that you have on a particular brand of clothing, the higher the price will be, either until there is no longer a supply, or until there is a change of interest that causes a surplus of supply. Once that occurs you will still have the supply, but yet the demand (interest) is low, causing the owner to lower the price in order to sell the remaining supply. The goal is to have your supply and demand goals met, while also maximizing your revenue.
How do the concepts of microeconomics and macroeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity? The lessons taught by the simulation in regards to supply and demand teaches how

Related Documents