Supply and Demand

"Microeconomics Law of Supply and Demand"
ECO 365
July 6, 2015
Michael Blakley

"Microeconomics Law of Supply and Demand"
The simulation of “The Laws of Supply and Demand” provided a wealth of information about how crucial micro and macroeconomic is to the economy. Green Life Apartments in Atlantis city depicted the impact of various economic factors; in which it was apparent that micro and macroeconomic played a role in this scenario. In the simulation microeconomic could be categorized as changes in the equilibrium, and “supply and demand,” related to the topics that affect the small apartment market where the company was located and operated from. As for Macroeconomic, the idea in the scenario was to categorize the price elasticity and price ceiling that impacted the region of the local apartment.
The simulation showed “a shift in the supply curve” or in the “curve of demand” that caused a significant change in the economy (or economic environment).one example that the simulation showed was when “the demand curve shifted to the left”, in the graph it showed that customers demand for apartment starting to decrease and therefor; causing a decline demand for apartments to be filled. The reason why this situation happened was because there was an extensive demand for property ownership forcing the company management to decrease prices so that they could compensate. In this case, the equilibrium price and the demand for the property decreased while “supply and quantity” continue to remain steady.
On the same note, “if the supply curve” shifted “to the right” it would have showed an increase of apartment that were available for renting. In a situation like that management would have to expand their buildings so that they could accommodate more unite to meet the demands of customers. However, if there were no changes in demand that the best solution would be to lower the price to fill the empty units; doing this could prove to be a profitable decision if enough...