Supply and Demand Simulation Analysis
The entire world is faced with making decisions. Many individuals make those decisions according to his or her personal self-interest. Other decisions are made based on the best interest of a certain company or business. The University of Phoenix set up a simulation to aid in the education of certain aspects concerning supply and demand to familiarize students with the concepts of supply and demand in today’s economy. This paper will first identify the factors that cause the changes in supply and demand in the simulation. Next, it will explain how shifts in supply and demand affect the decisions I made in the simulation. The paper will also list four key point, which are emphasized. Then I will attempt to apply the concepts of supply and demand from the simulation to my job. Subsequently, this paper will try to determine how price elasticity of demand affects the decision-making of the consumer and of the organization. Lastly, a summary of the results from the simulation will be established.
The simulation focuses on the supply and demand of a fictional property management firm called GoodLife Management. GoodLife Management is a business, which is located in the fictitious city of Atlantis. The company’s main goal is to rent out two-bedroom apartments on a month-to-month temporary lease. According to the facts in the simulation GoodLife is the only firm in Atlantis which rents out apartments, making it a monopoly. Its chief responsibilities are to receive 30-day notices for vacancies, establish new rental rates for the vacancies and to set advertising schedules. The simulation presented functioning examples of a number of factors, which caused changes in the supply and demand of the two- ...