Supply and Demand
August 12, 2013
There were two microeconomics and two macroeconomics concepts in the simulation. Atlantis is a microeconomics apartment company which manage apartment complexes and homes in the city. Atlantis had one shift supply curve and one shift in the demand curve when business started moving into the city. These shifts affected the equilibrium price, quantity, and decision making with the demand needed to supply to consumers. I am applying what I have learned with supply and demand from the simulation to my management job with our rate increases. The concepts of microeconomics helps us understand the factors that affect shifts in supply and demand on the equilibrium price and quantity. The price elasticity of demand affects consumers purchasing and the firms pricing strategy with supply and demand.
Microeconomics and Macroeconomics There were two microeconomics and macroeconomics concepts in the simulation. Atlantis is a rental company that manages the apartment and homes in the low populated city. The microeconomics concept in this simulation with Atlantis is the rental decision to maximize profit with decreasing vacancies. The property management company has consider the supply and demand of the apartments either by lowering the prices to increase rental occupancy or by raising the prices to maximize the cost of the rental inflation in the apartment complex. The macroeconomics simulation was with GoodLife property management as a whole. By GoodLife lowering the rate allows them to increase their revenue. As the rental Management Company reaches it revenue goal by lowering their rental rate the demand and the quantity decreases.
Equilibrium Price GoodLife started renting at prices below equilibrium, the quantity demanded exceeds quantity supplied, and there is a shortage in the market. Consumers are willing to rent or buy a home than producers are willing to sell at this price. This makes the market value increase when other companies convert into the city. As the price increases the quantity demand decreases and consumers turn to buy mobile homes or other alternatives. This causes the property management company to adjust to until equilibrium is attained. Similarities in quality supply exceeds quantity demanded. The price on apartments will increase or decrease until equilibrium is attained. Supply and Demand Watching this simulation I could apply this to my storage manager job at Extra Space Storage. I deal with a supply and demand in my workplace every day. For example, I manage a storage facility which contains 592 units that are different sizes. If my customers starts renting larger units then the smaller units, I will offer a promotion on the first month rent on the smaller units trying to get some of that space rented. I would than drop the first month free on the larger unit and offer the first month half off since the demand is so high. If I continue to rent the larger units with the first month half off and I see my…