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Supply and Demand Simulation.

Using the link provided in the integrated, access and complete the Supply and Demand simulation. Based on your learning, reading, and on the simulation, prepare 750 words and summarize the content. Be sure to address the following:

a. What causes the changes in supply and demand in the simulation?
b. How do shifts in supply and demand affect your decision making?
c. List four key points from the reading assignments that were emphasized in the simulation.
d. How can you apply what you learned about the concepts of supply and demand from the simulation to your workplace?
e. Determine how price elasticity of demand affects the decision making of the consumer and of the organization.
f. Summarize your results of the assessment for your instructor

Solution Preview

a. What causes the changes in supply and demand in the simulation?

My actions namely the entering of the monthly rental rate can cause a change in demand in the simulation. That apart the increase in the income of the people with the entry of Lintech has led to an increase in demand for a substitute and led to a decrease in demand for two-bedroom apartments. The decrease in demand further causes a decrease in supply because the two-bedroom apartments are now converted into condominiums and sold. Changes in demand are also caused by a price-ceiling imposed. This leads to shortage(1).

b. How do shifts in supply and demand affect your decision making?

The shifts in supply and demand affect my decision making. Once I got the go ahead of converting two-bedroom flats into condominiums and selling them, I began to charge a little higher for the left-over two bedroom flats. In addition, when there was the shift in demand for two bedroom flats because of an increase in income and a higher demand for separate apartments, my decision making changed and I decided to go in for converting the two-bedroom flats into condominiums and selling them. Similarly, when the simulation said that there was a change in preferences towards purchasing detached ...

Solution Summary

The supply and demand simulation is discussed very comprehensively in this explanation, which is about 858 words with references.

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