The Supply and Demand Simulation was an exercise in applying the contribute and penury concepts of deuce bedroom apartments in the fictional metropolis of Atlantis. Going through the simulator provided answers to the question of what caused the changes in tally and demand. Also, the finality making process was effected by the shifts in supply and demand as it pertains to the renting price and quantity of the two bedroom apartments. Four key points were raised in the simulator. These points were economical growth, business cycles, unemployment, and inflation. Practical application can always be incorporated no matter what industry is being addressed. A person can always take away from a learning experience some concepts to incorporate into their own organization.
In year 1, the request was for the vanity rate to be brought checkmate to 15%. In doing so, the monthly rental rate decreased. When the rental rate is reduced, the demand for more apartments is increased and therefore the vacancy rate is decreased.
In the next section of the simulator, the demand was to accept more apartments. The rental rate then needed to increase, to $1,550 per month, in order to lease all available apartments because of the increase in maintenance costs.
The next issue addressed was the imbalance mingled with quantity supplied and quantity demanded.
A balance was struck imputable to a lowered monthly rental rate. The rate decreased, then, to $1,050. With the demand and supply in a state of equilibrium, there is no incentive for the rental rate or the number of apartments to change.
later two years, a new company, Lintech, Inc., moves into town and creates a great amount of jobs and also increases the population of Atlantis. This is one of the major contributors to the changes in supply and demand in this simulator.
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