Microeconomics

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This is a result of a demand shift to the left related to a lack of available tenants for the apartments. The property management company has to decrease rental rates allowing the quantity supplied to decrease as well (University of Phoenix, 2012), creating a downward swing in the supply curve. The price of rentals decreased to create less quantity that is available for rent creating equilibrium and a decrease in surplus. This is a difficult decision to lower price significantly but will continue to create revenue for the property management company while decreasing supply of vacancy.

1. If an economy produces final output worth $5 trillion, then the amount of gross

The price of rentals decreased to create less quantity that is available for rent creating an equilibrium and decrease in surplus. This is a hard decision to lower the price significantly but will continue to create revenue for the property management company while decreasing supply of vacancy.

This week’s assignment examined the effects of supply and demand on the pricing and availability of real world goods. In this instance, the simulation looked at pricing and availability of two bedroom apartments in the fictional city of Atlantis. The simulation takes a look at several different situations, outside market factors and governmental influence. By going through the simulation and adjusting the pricing levels of the apartments and the number that are being made available to be rented, the simulation shows the effects of things like new employers moving into the area, rent control laws being put into effect and the

Goodlife Management experienced an increase in the demand curve of rental apartments due to the decrease in the rental rate. This shift in the demand curve would cause the equilibrium price to slightly increase because the demand curve would shift to the right and the supply curve would stay the same causing the price to fall higher upon that demand curve. The quantity of the apartments available would stay the same and ultimately would encourage the property manager to follow through with the decision to decrease the rental price. A great example of a shift in the supply curve occurred when the property manager was asked to rent all of the 2500 apartments available in order to obtain zero percent occupancy. With the increase of the monthly rental price, Goodlife Management shall have more incentive to lease more apartments to tenants. This shift in the supply curve would drive the equilibrium price in a more positive direction to further encourage the rental of more apartments. The quantity of apartments would obviously increase caused by the increase in the supply available for rent. Such a decision to rent additional apartments at a higher price would more than likely be a definite alternative as revenue shall increase as the vacancy rate gets closer to zero percent. Ebara Technologies, Inc. (ETI) is a nationwide corporation who manufactures vacuum pumps in which one of the corporate offices resides

Demand can either decrease or increase based on price of a product or service. Consumers have a tendency to buy products when there is a decrease in price. Companies have to kick off discounts to the consumers to increase demand. Pricing strategies for consumers are to buy when prices are low, although companies have to change prices to increase and decrease demand when needed. The simulation showed the same effect from the property management company. When supply was low of apartments the company had to increase price to decrease demand. When supply was too high the company had to decrease price to increase demand. The price elasticity of demand is flexible in which it can be changed and in return have an immediate effect. However, this can be harmful for

| Complete the Supply and Demand Simulation located on the student website. Write 700 - 1,050-word paper of no more than summarizing the content. Address the following: * Identify two microeconomics and two macroeconomics principles or concepts from the simulation.

The supply and demand simulation was a simulation of GoodLife Management, a property management firm controlling all of the seven apartment complexes in the city of Atlantis. For the 9 year period in the simulation the housing market had many ups and downs because of businesses moving into the area bringing an increased amount of jobs, the change in consumer preferences and company expectations, and the policy changes induced from the government.

Macroeconomics showed how the increase in jobs and population affects the increase or decrease on the apartments. Equilibrium rental rate is higher than before, and the number of apartments demanded and supplied has increase

Students at San Pasqual High School created a music video outlining the major concepts of microeconomics while at the same time relating each lesson to the real world, albeit in a humorous manner. The application of these ideas in the video ranged from determining the price of gas to finding a dance partner. The concepts addressed by the students including market structures, government intervention, elasticity, and scarcity, that all hold value in everyday life and an understanding of their importance can contribute significant benefits to the power of the consumer within the market.

In the United States, minimum wage has remained at a low number for several years. Minimum wage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimum wage is considered a price floor and the minimum wage laws determine the lowest price possible that any employer must pay for labor. In an economic model, the quantity of supplied is greater than the quantity demanded and the minimum wage is above equilibrium price and quantity. Minimum wage prevents labor supplied and labor demanded from moving

Microeconomics is the economic influences that impact at the micro, or firm, rather than macro level. The study of this subject is one that is highly valuable for any studying business with the provision of knowledge that will increase understanding of different influences and support the decision making processes. With the knowledge gained, along with the skills in applying that knowledge developed through class work and exercises for the different modules, there has also been the development of increased confidence, both personal and in the theories, in using the relevant concepts and tools in a practical setting.

The macro environment in the Communist country of China is represented by a socialist system with Capitalistic characteristics unique to China. Despite having many similarities to an authentic Capitalistic system, China is placated upon a macro environment wherein the Communist party and its policies deeply impact all aspects of the economy and economic development. Different industries are present within the country including the Shareholder System Enterprise, the State Owned and Control Enterprise, and Foreign investment enterprise, which is what our company would

This year, the Fed increased base fund interest rates by 25 basis point. However, according to Sanjay (1), the increase in interest rate will not affect the decision of firms in the apartment market to change their investment decisions. Sanjay (1) notes that the interest in the economy are still below the threshold that can make firms consider the cost of capital expensive enough to change their investment decision. This threshold is considered to be 3%. This means that any firm in the apartment market will generate adequate profit to meet capital expense as well as other costs of business if the interest rates are below 3%. Thus, Fed can revise the interest rates upwards without meaningfully affecting the level of investment in the apartment market. This shows that price elasticity of supply of houses is not high. On the other hand, consumers will not face a high increase in price for houses because supply will remain relatively constant. According to Vasel (1), monthly repayment will rise by only $57. This increase has little impact on purchase decision due to low price elasticity of demand for homes.