Macroeconomics Essay

678 Words Nov 8th, 2014 3 Pages
Microeconomics and the Laws of Supply and Demand
Vanessa Hill
ECO/365
October 8, 2014

The Supply and Demand Simulation categorized the application of Macro and Microeconomic principles as linked to the real world. It concentrates on that many times the vacancy level can be personal, may rest on individual decision, and the market prices can be easily adjusted to meet different expectations. It also talks about the role of the shift of the supply curve and the demand curve.
Demand refers the quantity of a product or service desired by buyers. When demand goes up, usually the prices of the products are expected to rise. The Supply and Demand simulation also is a appropriate case of what we experience everyday as part of our
…show more content…
There are many influences, such as price increases or decreases that can cause changes in supply and demand. When a small decrease accurse in the rental price it guides an increase in the demand of housing. When an increase in a rental price of a two room apartment triggers a decrease in demand for housing by a sizable margin. Contractors want to provide more houses at increase prices than fewer ones at decrease rents. With a growth in population in Atlantis this led to demands for housing. Which aids in the rise in rental prices as demand surpassed supply. The suppliers are enthusiastic to supply more units at an adjusted rental price. If the population declines, demands for housing will tumble and any existing units can be a bargain at a lower price. However, suppliers are not happy on marketing their units at discounted prices.

When looking at the price of elasticity of demand the question that comes to the turf is how important does the price play on the consuming behavior of giving product or service in the market. This refers to a product or service and its importance’s to have or not if so does a small increase change the decision making of consuming? Factors regarding the elasticity of demand in price are the available substitute and time, price to beget ratio, necessity or luxury. If there were no available hydrating liquids besides bottled water for free, the price of bottled water would be able

Related Documents