U of P Eco 365 Week 2 Individual

Supply and Demand Simulation

ECO/365

August 27, 2012

Professor Sadu Shetty

Supply and Demand Simulation

In the city of Atlantis being a Property Manager is not always an easy task. Responsibilities can range from receiving 30-day notices for upcoming vacancies in apartments to establishing new rental rates for said apartments and even setting advertising schedules. At GoodLife Management Firm there are apartment complexes to manage through trying times. The decisions made at GoodLife have everything to do with the principles economics.

“Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society” (Colander, 2010). Based on the changes and shifts in the economy, decisions shift to accommodate different aspects. The different aspects could include macroeconomics or microeconomics, or both. “Macroeconomics is the study of the economy as a whole. It considers the problems of inflation, unemployment, business cycles, and growth” (Colander, 2010). Microeconomics focus on individuals and the choices that are made based on or influenced by economic forces, (Colander, 2010).

From the simulation two microeconomic principles could include things as simple as one choosing to live in one of the two-bedroom apartments offered, or not, and the willingness to pay the rental price offered for said apartments, or not. The principles will depend on the individuals and the choices that are made based on the economic forces around them. These forces could come from the macroeconomic principles that are evident during the simulation.

Macroeconomic concepts are derived from the economy as a whole and can include any government policies that effect growth. The most noticeable was the government ceiling on rent prices. With the ability that the government is given, it is able to regulate the cap, or ceiling price that firms in the city of Atlantis are allowed to...