Simulation Of Living In Atlantis

881 Words 4 Pages
Register to read the introduction… People wanted to live in what was described in the simulation as the perfect city, tree lined streets, low pollution, and well maintained and peaceful city. Goodlife had housing, and was able to raise the prices for the apartments that they leased due to the supply and demand concept. The choice is always the consumers when it comes to renting from Goodlife, or they could go outside of Atlantis to search for housing that may be cheaper. Because of a sudden rise in the population of Atlantis this lead to a spike in the demand in the housing market, and Goodlife could raise its prices because of that housing demand inside Atlantis. The next thing we look at is the opportunity cost, which is defined as the “benefit that you might have gained from choosing the next-best alternative” (Colander, D.C., 2010). This ultimately comes down to consumer choice and if someone could live in a neighboring community in a lower rent apartment, they would have a longer commute to work which would take time away from the other things they may enjoy. Whereas if they paid a higher rent in Atlantis to Goodlife they would have a shorter commute and more time for the things they …show more content…
Goodlife could do one of two things it could lower its prices to entice customers to rent its vacancies as opposed to renting outside Atlantis. Or, if Goodlife were renting their apartments then they could raise their price because there were fewer to rent from in the city. This is known as the invisible hand theory that “gives more power to the supplier of something that is in short supply” (Colander, D.C., 2010). This theory says that I there is less apartments and more interested customers that Goodlife could raise its prices because of the demand for them. Goodlife needed to have a 15% vacancy in the simulation, and this would represent a shift in the demand curve. For Goodlife to do this it had to lower its apartment rental prices, and thereby increasing the demand for apartments. On the other hand, Goodlife was able to supply more apartments when it raised its prices to cover maintenance fees by charging $1,550 a month. The housing market in my area of Texas has continued to drop because of such a large supply of housing. The demand for housing is at a current low. Once customers start to purchase homes in the area prices will stay the same and prices will steadily increase as the supply

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