Essay on Supply and Demand Simulation/ Goodlife
March 28, 2011
The GoodLife Management supply and demand simulation is based on the management of 2500 two-bedroom condominium apartments in a fictitious town named Atlantis. According to the simulation they are the only management firm in Atlantis and have a monopoly in the market. The simulation shows the issues the management deals with and gives the opportunity to see how the right or wrong decisions can affect the outcome of those decisions.
What causes the changes in supply and demand? GoodLife Management wants to drop their vacancy rate to 15%, in order to change the demand they know they will have to lower the rental rate it will then change the supply and increase the …show more content…
According to Basic Economics; “Equilibrium is defined as the intersection of supply and demand curves. The equilibrium price is the price where the quantity demanded matches the quantity supplied. The equilibrium quantity is the quantity where price has adjusted so that QD = QS. At the equilibrium price, the quantity that buyers are willing to purchase exactly equals the quantity the producers are willing to sell. Actions of buyers and sellers naturally tend to move a market towards the equilibrium” (Basic Economics, 2011, para 1).
Shifts in the supply and demand A shift in a demand or supply curve occurs when a good's quantity demanded or supplied changes even though price remains the same. Shifts in the demand curve imply that the original demand relationship has changed, meaning that quantity demand is affected by a factor other than price. A shift