Access over 20 million homework & study documents

search

ECO 365 Week 2 Individual Supply and Demand Simulation

Type

Homework

Rating

Showing Page:
1/5
Running head: Supply and Demand Simulation
1
Supply and Demand Simulation Paper
Name
Subject
Course Name
Instructor Name
Date

Sign up to view the full document!

lock_open Sign Up
Supply and Demand Simulation Paper 2
Supply and Demand Paper
This paper is a series of assessment applying supply and demands concepts regarding rental
rates for GoodLife’s two-bedroom apartments. The individual assessments have been reviewed
and compiled into supply and demand curves to understand and support equilibrium in the
market. Thus, allowing the manager to determine the motivational strategy or strategies most
appropriate based on individual knowledge, expertise, and market trends. The simulation
depicted an ideal virtual city, which is conducive to quality apartment rental and living happily
ever after. The Atlantis simulation is a study analyzing the supply and demand concept
affecting living accommodation allowing the student to assimilating certain factors influencing
the availability, pricing, and quality of two-bed room apartments managed by the GoodLife
firm; thereby affecting the demand curve, supply curve, and equilibrium. GoodLife
management wants to create a snapshot (point) on the demand curve reflecting the quantities
when potential tenants are willing to rent at reduced rental rate while maximizing revenue.
Rental rates of $1,000 per unit per month maximize revenue leaving 200 units unoccupied. At
this rental rate, maintenance, and incidental cost to the complex is absorbed into current rental
rates. Moreover, residential quality of life is upheld complementing the easy and laid-back
atmosphere of Atlantis. Property managers are proposing analytical data that reflects the
possibility of zero percent vacancy and the impact on rental rates for GoodLife’s two-bedroom
apartments. The rental rate at full capacity is $1,550 this is not a feasible rental rate. An
upward sloping supply curve supports the highest rate of $1,100 as the ideal target rate to
which maintenance cost is covered; however, 450 unit go unoccupied, but the diseconomies of
scales will rise demonstrating a long-run average

Sign up to view the full document!

lock_open Sign Up
Supply and Demand Simulation Paper 3
better supporting GoodLife’s two-bedroom rental posture. Research reveals the equilibrium
rental rate or quantity supplied to quantity demanded sales falls between $1,050 and $1,100
GoodLife monopolies the market in Atlantis; therefore, its other seven properties will flourish at
this rental rate. The cyclic movements and trends shifts related to macroeconomics variables of
Gross Domestic Product (GDP), population, inflation rate, and employment rate opportunities
increases the demand for two-bedroom apartments, detached homes, and condominiums affects
quantity supplied and how much will be offered for sale at a given price. When market prices
are free to move in either direction influences supply and demand to act against the pressure of
price arriving at equilibrium. Conversely, equilibrium quantity is the amount brought and sold
at equilibrium price driving the market. This is how the concepts of macroeconomics helps
GoodLife’s property managers understand the factors that affect shifts in supply and demand on
the equilibrium price and quantity. Microeconomics analytical assessment evaluates the
economy’s growth development performance over-time from the core of individual choices.
The influx of consumer demand for two-bedroom apartments to purchase at a certain price
intersects the demand and supply equilibrium. GoodLife management studied the decision-
making consideration of household incomes and determined the ideal price and quantity at
which to establish the rental rate thereby providing a blank. This is how the concepts of
microeconomics helps GoodLife’s property managers understand the factors that affect shifts in
supply and demand on the equilibrium price and quantity. The price elasticity of supply
measures the rate of response of quantity demand because of a price change. Small increments
of increased percentages rental rates measurers the responsiveness independent of units, making
comparison

Sign up to view the full document!

lock_open Sign Up
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Great! 10/10 would recommend using Studypool to help you study.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4