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Suppy And Demand Simulation

Charinda Williams
University of Phoenix
ECO/365
Kathy Stowe
May 27, 2009

Supply and Demand Simulation

Supply and demand is an important part of business operations therefore this paper will review how supply and demand impacts an organization through a simulation. This paper will discuss the causes of changes within supply and demand. This paper will discuss how shifts in supply and demand affects the decision making process. This paper will discuss four key points found within the reading assignments related to the simulation and how each concept can be applied within the workplace. This paper will determine how price elasticity of demand affects the decision of the consumer and the organization.
Causes of Change
As a property manager some cause of change in supply and demand according to the simulation are the amount of units available for consumers, price as new tenants have the opportunity to get a better rate versus a tenant whom has lived on the property for a while therefore the organization needs direction. The property manager will have to deal with overflow in terms of population because as soon as all the apartments are filled his or her demand will decrease causing prices to potentially raises. Therefore the property manager will need to closely monitor the demand curve of the apartments and create and equilibrium because just as consumers are happy to living in such night place her or she may become dissatisfied and increase the Good Life’s vacancy rate.
Shifts in supply and demand
The shifts and supply and demand affect the decision making process due to the factors involved, in the case of Good Life Property, management was forced to deal with fluctuation of population within Atlantis, in order to meet the needs of both the consumer and the business whole heartily(2009). A shift in demand will move to the right meaning higher quantity will be produced as the prices will continue to rise in order to maintain current...