Supply and Demand Simulation

The Supply and Demand Simulation was an exercise in applying the grant and penury concepts of deuce bedroom apartments in the fictional capital of Atlantis. Going through the simulator provided answers to the question of what caused the changes in tally and demand. Also, the decision making process was effected by the shifts in lend and demand as it pertains to the renting price and mensuration of the ii bedroom apartments. Four key points were raised in the simulator. These points were frugal growth, business cycles, unemployment, and inflation. Practical application can always be incorporated no matter what industry is being addressed. A person can always take away from a learning experience some concepts to incorporate into their own organization. In year 1, the request was for the vanity rate to be brought overcome to 15%. In doing so, the monthly term of a contract rate decreased. When the rental rate is reduced, the demand for more apartments is increased and the refore the nihility rate is decreased. In the next section of the simulator, the demand was to ask more apartments. The rental rate then needed to increase, to $1,550 per month, in order to lease all available apartments because of the increase in maintenance costs. The next issue addressed was the imbalance mingled with quantity supplied and quantity demanded.

A balance was struck imputable to a lowered monthly rental rate. The rate decreased, then, to $1,050. With the demand and run in a state of equilibrium, there is no inducing for the rental rate or the number of apartments to change. later cardinal year s, a new company, Lintech, Inc., moves into ! town and creates a great sum total of jobs and also increases the population of Atlantis. This is one of the major contributors to the changes in communicate and demand in this simulator. If you want to get a full essay, order it on our website: OrderCustomPaper.com

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