Supply and Demand Simulation

Supply and Demand Simulation

ECO/365 Principles of Microeconomics

Abstract

Atlantis is a small and well maintained city. Positive aspects about living in this city include large parks, jogging paths, and maintained streets and sidewalks. When a person is deciding to move into the city of Atlantis or move around within the city, two bedroom apartments become one of many places to look for housing. GoodLife Management is a company who rents and leases many of the two bedroom apartments within the town. Many of the company’s apartments are vacant and the company is looking to understand and change the vacancy rate. Using principles of macro and microeconomics, it becomes apparent how to decrease the vacancy rate from 28% to 15%. In addition, understanding the shifts in the supply and demand curves can also help the company understand when to raise the rent, when to lower the rent, and when to sit back and wait. Even though a simulation can give a person an idea of how economics plays a huge role in every person’s environment, it is important to understand how economics plays a role in everyday life and everyday jobs. This paper will discuss economics in a previous job and how it played a role in many people’s lives. Finally, this paper will also discuss how the price elasticity of demand has a direct effect on the rental rates.

Supply and Demand Simulation

Macro and microeconomics play a huge role in people’s everyday life. The simulation about apartments in Atlantis makes it apparent how often people come into contact with these two important aspects of economics. Supply and demand affect everyone and many aspects of everyday life. Understanding the supply and demand curves can help people understand when the best time to buy is and when the best time to sell is. Even though many people understand many of these aspects, it is essential to understand how these principles can impact a person’s way of life. There are a number of real world...