What causes the changes in supply and demand in the simulation? Factors that affect supply and demand 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.
The apartments are in a fictitious town called Atlantis. In the simulation, the demand curve is downward sloping so as the price of the rentals decreased, the demand increased. However, the supply curve is upward sloping.
The number of apartments increased as the price increased. A surplus in the market for the apartments exerts downward pressure on the price. Adversely, a shortage in the market exerts an upward pressure on price. To attract renters, GoodLife would need to lower prices if there were a surplus in the market or increase prices if there were a shortage in the market.
In order to maintain the balance of quantity demanded and quantity supplied, GoodLife would need to raise their prices. Shifts in Supply and Demand Management directional changes of GoodLife along with population changes within Atlantis and the neighboring areas affected supply and demand.
Preference changes of the tenants caused the demand for apartments to decrease. GoodLife management converted rental apartments into condominiums o sell causing a decrease in the supply causing a decrease in the supply and a decrease in demand at the same time.
This created a shift to the left decrease in the supply curve and the demand curve. Key Points from Reading Assignments The four key points from the reading assignment emphasized in the simulation were supply and demand, equilibrium, shifts in supply and demand, and price ceilings.
The simulation itself was based on the premise of supply and demand. Supply and demand is the economic term defining the relationship between demand, supply, and price.
As price increases, quantity demanded decreases. When price decreases, quantity demanded increases. Shifts in supply and demand were illustrated using different causes resulting in a decrease in supply and demand concurrently. Equilibrium is the quantity demanded equals the quantity supplied.
When prices are below equilibrium, the quantity demanded exceeds the quantity supplied and there is a shortage in the market. Consumers, then, are willing to buy more than producers are willing to sell at this price.
This causes price to increase. As price increases, quantity demanded decreases and quantity supplied increases. This adjustment process continues until equilibrium is attained.
Similarly, at prices above equilibrium, quantity supplied exceeds quantity demanded, and there is a surplus in the market. Producers are willing to sell more than consumers are willing to buy, which exerts a downward pressure on price. The price continues to decrease until equilibrium is attained.
The simulation demonstrated that if apartment prices were below equilibrium, the number of apartments demanded exceeded the quantity available, which resulted in a shortage in the quantity of available apartments. This also caused the price of the rental apartments to increase.
If prices were above equilibrium, there would be a surplus of available apartments and this would drive the price down. The limit is usually below the equilibrium price.
Price ceilings can cause issues in the equilibrium between supply and demand. If the price for the apartments were at the ceiling price, and the demand for the apartments increase, the supply would then begin to decrease. The simulation showed that this scenario escalated and the quantity demanded exceeded the quantity available and a shortage will continue.
The products produced include interior and exterior door handles and exterior mirrors. Therefore, understanding the market for the products produced affects production on a supply and demand level.
Changes in the economy in affected the production levels of our products. Due to the decrease in demand, it created a surplus in the quantity of product on-hand. What did not occur, however, is a change in the price of the products. The product prices remained constant. These reductions compensated for the pricing of the products not changing.The simulation showed that a shift in the supply curve or the demand curve could cause significant changes to the economic environment.
For example, if the demand curve shifted to the left, it would show a decrease in demand from consumers and cause fewer apartments to be filled. Analyzing Supply of Demand Simulation ECO/ January 31, Analyzing Supply of Demand Simulation Supply and demand is a significant element of business procedures thus this paper will evaluate how supply and demand affects a business via a .
What causes the changes in supply and demand in the simulation?b). How do shifts in supply and demand affect your decision making?c). List four key points from the reading assignments that were emphasized in the simulationd).
How can you apply what you learned about the concepts of supply and demand from the simulation to your workplace?e).
The simulation showed that a shift in the supply curve or the demand curve could cause significant changes to the economic environment. For example, if the demand curve shifted to the left, it would show a decrease in demand from consumers and cause fewer apartments to be filled.
Causes for Change in Supply and Demand. The causes for changes in supply and demand in the simulation were driven by the availability of two-bedroom rental apartment, demand for these rentals, the quantity of available renters, and the price per month.
"For Jane T (LLC)" Supply and Demand simulation a. What causes the changes in supply and demand in the simulation?
b. How do shifts in supply and demand affect your decision making? c. List four key points from the reading assignments that were emphasized in the simulation. d.