Supply And Demand Simulation Paper

Supply and Demand Simulation

What are the principles of microeconomics and macroeconomics? To most of us these principles we hear about seem complicated and have no bearing on our daily lives. Unfortunately these concepts play an enormous role in our daily lives whether or not we are aware of them. Microeconomics is the division of economics which analyzes the behavior of individual consumers. Companies attempt to understand the decision making processes of households and businesses, their main focus is how the individuals interacts with the sellers and what factors influences the buyers and sellers to make the choices they make. Microeconomics focuses on patterns of supply and demand they focus on how much to produce and how much to charge

It depicted the various economic factors that affected the management of the property and how the supply and demand affected the firm’s bottom line, while paying attention to how community expansion and unemployment played key factors in how rental rates are conceived. It also took into consideration that if there was a decrease in demand from consumers for the apartments being offered the demand curve shifted to the left, the reason for that shift was the increased desire to own property rather than rent an apartment. To combat the surge in the consumer desire for property ownership the property management firm was forced to lower rental rates to increase demand for their apartments. Because they were forced to do this by a change in consumer desires the equilibrium price had to be reduced because the demand for the apartments decreased while the quantity remained

A price ceiling occurs when the government establishes legal limitations on how high the price can be for a product. The main reason that this imposition may be made is to protect the consumers from exploitation by the sellers. In order for the price ceiling to be effective it must be set below the market equilibrium. When a price ceiling is imposed a shortage occurs, which creates more demand than there is at the equilibrium price, there is also less supply than there is at the equilibrium price which in turn creates more quantity that the quantity supplied. In the case of the property management company the price ceiling puts a limitation on what amount could be charged to rent an apartment, which prevented the company from obtaining the highest price possible for the apartment available for rent provided there was already an adequate demand for the rental of the