Browse over 20 million
homework answers & study documents


Supply and Demand Simulation




Showing Page:
Economics is the huge world which deals with things like money, stocks or bonds, prices,
budgets etc. In simple words it is defined as the production, distribution and consumption of
goods, services for the welfare of mankind. This field is classified into two major areas micro-
economics and macro-economics. Micro-economics, as its name indicates that it takes a
microscopic view of the economy, means deals with the behavior of individual’s household,
government, firms and the decisions they made along with their interaction to a specific market.
Alternatively, macro-economics looks for the overall economic output. Economic simulation
which is also termed as economic simulation games is used to monitor the economic processes.
Earlier, prices and quantities have been mentioned as the most considerable attributes
for production and distribution of goods in market. Supply and demand hypothesis is a principle
that describes how prices organize with the amounts produced and consumed. It deals with the
supply and demand curve influenced by different circumstances happened to Goodlife's two
bedroom apartments in Atlantis city. Decisions made by the simulations on the basis of
experiences that an Atlantis community have and the efforts made by Goodlife Company to
achieve economic goals with changes as being presented by the community.
In this paper I will identify two macroeconomic and microeconomic principles present in the
simulation and how these are classified into micro and macro-economics and also identify at
least one shift of the supple curve and one shift of the demand curve in the economic simulation.

Sign up to view the full document!

lock_open Sign Up
Atlantis is a town situated in the North of Cape town city. It is heavily populated where
lack of housing and crime are major challenges to cope out. Here one can easily find the
attractive two bedroom rental apartment, being rented by majority of local population. It is
crucial to be familiar with whatever is happening in the town’s local economy, essentially in the
macro and micro-economics perspective. In case of micro-economics, one should critically
analyze that how these two bedroom rental apartments affects the lives of people according to
demand and supply theory. With the sudden increase in the rental prices, will tenants be able to
keep the apartments by making adjustments with the posed changes in rental prices? Macro-
economics takes the whole economy of the area under consideration. When the Goodlife
Company arrived in the town it raised the positive change in the demand and supply curve. Like
the demand for the two bedrooms rental apartments elevated and also the demanded rental prices
with the growing population. This proves to be advantageous for the owners who are getting the
prices according their demands. The overall economy would be able to face all the expanses
(high rent prices) been posed with the arrival of new Good-life Company. But in the later few
years, the positive boost in the demand and supply declined because the individuals were no
longer interested in two bedrooms apartments instead show their interests to buy detached
There were many cases discussed in the demand and supply curve that are responsible for
curve shifts in the economic simulation studies. Higher prices let the suppliers (Goodlife
Company) to supply more apartments for rent with the increased rate of rents. The positive shift
in the curve is due to the production cost which might be obtained with extra supplies

Sign up to view the full document!

lock_open Sign Up

Sign up to view the full document!

lock_open Sign Up

Outstanding. Studypool always delivers quality work.

Thanks for the help.

<3 it, thanks for saving me time.