In this essay the focus is on the Supply and Demand Simulation on the University of Phoenix online resource page for Economics. The questions that will be answered are the following:
1). What causes the changes in supply and demand in the simulation?
2). How do shifts in supply and demand affect your decision-making?
3). List four key points from the reading assignment that were emphasized in the simulation.
4). How can you apply what you learned about the concepts of supply and demand form the simulation to your workplace?
5). Summarize your results in the simulation.
The first question to explain is what causes the changes in supply and demand in the simulation.
To understand the changes in supply and demand in the town of Atlantis we first need to understand the definitions of supply and demand. According to David C. Colander the definition of the Law of Demand is the following:
The Quantity demanded rises as price falls, other things constant.
The Quantity demanded falls as price rises, other things constant.
In the first scenario the regional property manager Hal Morgan of Good Life Management wants to increase the demand for their two-bedroom temporary month-to-month rental rates. In order to do this they need to lower the rental rate to $1050.00 a month. This will bring the occupancy rate down from 28 percent to 15% and revenue will be at 1.79 million dollars. The quantity demanded rises to 1700 as the price of the two-bedroom apartments fall to the current rate of $1050.00.The next scenario is dealing with the Law of Supply.
According to David C. Colander the definition of the Law of Supply is the following:
!). The Quantity supplied rises as price rises, other things constant.
2). The Quantity supplied falls as price falls, other...