Analyzing Supply an Demand

Analyzing Supply and Demand Simulation

ECO/365

November 26, 2012

By: Erin Kelly

The changes in Supply and Demand

I have found a number of things that can affect the supply and demand while completing the workshop. They are the demand for the apartments, how many apartments are available, what the rent of the apartment is the number of people that want to rent an apartment. The simulation says that a downward curve is then sloping down. According to the workshop, when the rent for the apartments was reduced, the need then went up.

Then it stated that the supply curve then in turn slopes up. Then the amount of the apartments available went up as the rent went up.

Different Shifts that Affect Decision Making

The change in supply and demand changes the results in various ways according to the workshop. In the workshop the things that Good Life was trying to do and the changes in the people of Atlantis had an impact on the supply and demand. When the people changed their needs, the need for the apartments went down. Good Life then decided to try another approach and convert the apartments into condos that they could then sell. By doing this they in turn caused a decrease in the supply and the demand.

Four Key Points

Four key points in the workshop that I found were the supply and demand, the balance and imbalance, the shifts in supply and demand, and the price lock set by the government. I thought the workshop for supply and demand was useful for me to understand the different factors that affect it. The stimulation showed that a demand curve slopes down. The workshop showed when the cost of apartments went down, the need went up. The supply curve slopes up. The number of apartments available went up when the cost went up. Equilibrium means that opposing dynamic forces cancel each other out. That means that equilibrium can be defined as the position at which quantity that is demanded will meet up with the supply that is...