Supply And Demand Simulation Essay

923 words - 4 pages

Supply and Demand Simulation

ECO/365
November 11, 2013

Supply and Demand Simulation
Microeconomic and Macro Principles
As per the simulation, the two major principles of microeconomics are demand and supply. The simulation focused majorly on the demand and supply of rental properties. The simulation clearly states that the macroeconomic factors are changes in the population trend. One of the factors that would directly influence these changes is choosing either to buy or rent apartments. Colander (2010), says, with falling prices it increases the quantity demanded and the supplied quantity reduces when the market prices recede (Colander, 2004).
Supply and Demand Shifts
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Therefore, the demand as well as the supply curve shifted.
Simulation Application
This paper was written by a person that works as a logistics manager for a multinational corporation with supplies several countries with its goods. The position requires goods to leave for the market at the specific time with the proper pricing, branding and transportation. A deep understanding of movements within the market such as demands and quantities to be supplied unto buyers is a requirement of this office. By applying concepts learned within the simulation this individual might have an advantage. Understanding the effects of demand and supply to the company are vital concepts which are learned in the simulation.

Understanding Supply and Demand using Microeconomics
With this simulation the reader should learn how to understand how demand and supply shifts happen and the causing factors of the shifts. The writer of this simulation outlined how a firm meets the market equilibrium and factors that directly influence it. Prices below the equilibrium result in high demands for apartments which in turn, results in a shortage of the number of apartments for renting; price increases being the effect. The simulation shows readers that larger numbers of apartments would result in lower prices. Understanding the causes of shifts in demand and supply after reading this simulation should become easier.
Price Elasticity Effects on Consumers
Demand and supply are vital concepts of economics. Product prices are influenced positively or negatively by the products availability. When demands by consumers for products are higher within a market with a supply that is lower that would result in an increase in prices of that product. This might discourage consumers from purchasing that product given the raised pricing influenced by ever so...

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