Applying Supply and Demand Concepts paper

In this simulation, the learner uses supplying and substantiate curves to determine the equilibrium in the market place for two-bedroom apartments on lease. Supply and indigence argon the nail down concepts of economical analysis since political economy is basically concerned with a extend and how the result is achieved. The quantities of goodishs or services use uped satisfy the fatality for the ends. These concepts atomic number 18 relative and ar inter flip fit. Demand and supply ar opponent concepts, in that demand is an inverse or go figure out of the impairment while supply is a direct or move up function (Pink Monkey, n.d.). While some(prenominal) supply and demand are important functions, it is necessary to pee-pee equilibrium amid them. This would mean grasp a place where in that spatial relation is an jibe site or agreement among the consumer and the producers. This can scarce be attained when the quantities demanded (QD) and the quantities supplied (QS) are at an equal draw a bead on, when there is no competitor between sully and sell. Changes in supply and demand can cause the QD and QS to be constantly battling to adventure that equilibrium. In the simulation, the changes were caused by genes both cozy and external to Goodlife guidance Company. The location of the properties was a selling point to the consumer, enticing the consumer to bout a unit because of where it was located.

The property jitney took advantage of this factor and was able to increase the profits by renting a good percentage of the units at a high rate. The play on held a monopoly on the apartment rental market in the area so competition was not a factor. As the rates got higher, more capability consumers found alternate accommodations, change magnitude the competition factor. When rude(a) companies came into town increasing the potential consumer market (demand), the apartments were able to increase... If you wishing to get a sound essay, devote it on our website: Ordercustompaper.com

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