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Supply and Demand Simulation

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Subject

Economics

Type

Essay

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Ovfuynz R

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Introduction

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.

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Discussion

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

homes.

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

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Introduction 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 cl ...
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