Eco 365 Supply & Demand Paper

1089 Words 5 Pages
Supply & Demand Simulation
Erica Bradford
June 19, 2013
Jeremy Alessandro

Supply & Demand Simulation
Goodlife Management is the sole provider of apartments available for rent in the city of Atlantis in which the supply and demand simulation provided by UPOX takes place. The simulation provides excellent, real-life examples of how the supply and demand curves may shift based upon various factors that occur within the market in Atlantis. The following details such examples as microeconomics versus macroeconomics, equilibrium pricing, and what drives the elasticity of the market price of the two-bedroom apartments that are available for rent in Atlantis.
The study of microeconomics focuses on the impact of individual
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When ETI first opened for business in Sacramento over thirty years ago, most of the parts, repair, and labor were performed in house and not ordered from Japan. Back then it was much cheaper for ETI to manufacture the parts necessary to build the vacuum pumps without much support from the Japan office. However, as the years went by it became more expensive to perform most of the manufacturing at the Sacramento location and it was determined that ordering from Japan was the most cost effective path to take. This is an excellent example of how the supply curve for ETI decreased while at the same time ETI was able to save quite a bit of money. The demand curve stayed about the same because ETI’s customers were still ordering the same quantity of vacuum pumps. This change provided a great incentive for ETI to purchase the vacuum pumps from the Japan office much like many other corporations in the U.S. purchase parts from wholesalers.
The concepts of microeconomics and macroeconomics are both quite helpful to understand what factors affect the shifts in the supply and demand curves that determine the equilibrium price and quantity in the economy. Basically all it takes is to logically think about whatever event(s) occurs and to follow said logic all the way through from beginning to end. Whether it’s just one event categorized under microeconomics such as a decrease in a price, such an event would logically increase

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