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    GoodLife scenario

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    Supply & Demand Problem:Using the link provided (copy & paste the link to internet adress bar): https://mycampus.phoenix.edu/secure/resource/vendors/tata/UBAMsims/economics1/economics1_supply_demand_simulation.html

    A. Access the Supply and Demand simulation.
    b. Prepare a 700-word paper summarizing the content in the simulation. In the paper, be sure to answer the following:
    1) What causes the changes in supply and demand in the simulation?
    2) How do shifts in supply and demand affect your decision-making?
    3) List four key points from the reading assignments that were emphasized in the simulation.
    4) How can you apply what you learned about the concepts of supply and demand from the simulation to your workplace?
    5) Summarize your results of the assessment for your instructor.

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    Solution Preview

    The online simulation provided by the University of Phoenix provided a good overview and understanding of the supply and demand process. Using supplied data users are able to almost flawlessly determine the cost of apartment units and see how the pricing is driven by the need for them. Conversely, the equilibrium is established by the overall supply and demand, therefore affecting the pricing.

    The online simulation provided by the University of Phoenix takes place in the fictitious city of Atlantis. The goal of the simulation is to accurately set pricing for two-bedroom apartments in the city based on supply and demand. As you can see, the simulation uses information from the property management firm GoodLife Management in conjunction with competitor's growth, city infrastructure changes, and market fluctuations.

    In order to establish rental costs for the properties, accurate interpretation of supply and demand is instrumental. Changes occur in the supply and demand when pricing changes as well as vice versa. Each impacts the other in both positive and negative directions.

    Increasing the occupancy rate required pricing to fall. In the simulation, 2,000 units were available and initial pricing assumed to be $1,174 per month. This cost resulted in a 72% occupancy rate and revenue around ...

    Solution Summary

    Excerpt: The supply curve is upwards sloping and depicts an increase in supply in relation to an increase in pricing. This would allow GoodLife to lease out more units. Generating a surplus in the market requires pricing above the equilibrium. This means there are more units available, or supplied, then people want, or demand. Conversely, a shortage in the market requires pricing below the equilibrium. This is when there are more units demanded versus the number available.

    $2.19

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