Supply And Demand Simulation

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Supply and demand is a vital portion of any business concept, and both come into play when attempting discuss economics as a whole. During the supply and demand simulation it displayed how the Good Life Management Co. located in the fictitious city of Atlantis is impacted by an excess of fluctuating supply and demand fiscal matters. For the Good Life Management Co. the fluctuations in the equilibrium come from changes within the supply and demand of their units. The supply and demand factors will only have an impact on the business that they are pertinent, and in this case it is the business of apartments. Macroeconomic concepts are classified as price elasticity and price ceilings. (Colander 2013) The reasoning for this classification is …show more content…

For instance, when the demand was shifted to lower demand, it caused there to be a decrease in need or demand from consumers for the companies apartments; which means that there are less people seeking to purchase an apartment. With the decrease in need for the apartments, management was forced to lower the prices of the apartment to compensate the lack of interest in the apartments. When the demand was decreased, the equilibrium price also became lower. With this part of the simulation however, the supply and quantity of the actual apartments was not …show more content…

During the simulation, it showed that if the company wanted to be successful, they will need to set their pricing structure in conjunction with the demand of their units. If a company has an overabundance of a specific product and the demand is not present, the pricing will need to be adjusted to supplement the overabundance. Throughout the simulation, there was many times that the apartment company had to change their pricing or supply model to accommodate the demand set forth.
There are several sectors of macroeconomics that can play a significant role in equilibrium and quantity. For instance, if the government places a price ceiling on a product, it can limit the amount of money the charging agency can charge for a product. (Taylor 2006) Some may think that the price ceiling is set to prevent agencies from making too much money, but it can serve an important purpose in protecting the consumers from having to spend inordinate amounts of money for a product. As the economics factors of the situation change, there are many items that will see changes to the

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