Supply and Demand Simulation: Project Atlantis

Throughout the simulation I encountered instruction that I can apply the use of supply and demand at my workplace. As a soldier, leader and educator, supply and demand is represented by available student seats, man hours, supply, and equipment. The cost of educating one soldier costs $600 plus or minus. In today’s economy, we are forced to become creative in determining the best means to decrease costs. Although our demand remains consistent the military must meet the supply of inventory that is available. As demand decreases the military also has to decrease supply on hand while also cutting labor hours of not only soldiers as well as civilian personnel to remain profitable. When the demand increases for our services the need for increased personnel and the supplies also increases. The simulation also showed me several ways businesses can operate by simply adjusting supply to meet

availability of substitutes, and justify how you determine the price elasticity of demand for your firm’s product. b) Explain the factors that affect consumer responsiveness to price changes for this product, using the concept of price

Price elasticity that relates to demand is determined by many factors. Price elasticity is measured by the change in price and the response from consumer demand. The demand of a good or service will vary the price in the item. The most important factor to determine the price elasticity of demand is necessity. If a good is a necessity, the demand will seldom change and the price is able to be adjusted. The demand is the most important due to the freedom it provides for price adjustment and inventory control. With necessity comes an inelastic price. Other factors such as the

The Supply and Demand Simulation consist of microeconomics and macroeconomics concepts. The concepts are explained and how they apply to the principle of microeconomics and macroeconomics. The simulations presents shifts in the supply and demand curve, the rationale for the shift is given. Each shift is analyzed showing the effects of the equilibrium price, quantity, and decision making for the company presented. An explanation of the price elasticity affects the pricing strategy for consumers and company.

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

Recently, Tricia-Mart opened new branches to its existing ones. The management are keen on improving efficiency and services of the company. There are many ways in which this improvement can be done using simulation software: higher quality and efficiency from capital assets, better management of inventory, higher return on asset, this list is endless. But some of these improvements could be made without simulation, so the real question is ‘Why use simulation instead of another method such as real life experimentation?’

A. The concept of elasticity of demand has played a major role in managerial decision-making. It has greatly helped managers in consideration of whether lowering a price will lead to an increase in demand of a certain product, and if so, to what extent and whether profits would increase as a result of doing so. In this case the concept of demand becomes advantageous in that:

Goodlife Management is the sole provider of apartments available for rent in the city of Atlantis in which the supply and demand simulation provided by UPOX takes place. The simulation provides excellent, real-life examples of how the supply and demand curves may shift based upon various factors that occur within the market in Atlantis. The following details such examples as microeconomics versus macroeconomics, equilibrium pricing, and what drives the elasticity of the market price of the two-bedroom apartments that are available for rent in Atlantis.

| 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.

Two economic factors affect supply in a stable housing market, price of related goods or similar houses, and the price of the good, best represented by style or size in the case of the housing market. The affluence of a community typically determines how much homes sell for in those communities, and therefore communities where a lot of people want to live become areas where average home prices are high. (Kumar, 1) There is little space in these affluent communities, and therefore little supply. A good example is New York City, where no homes are available, only apartment buildings, and very few apartments are actively exchanged each year.

Anderson, P. L. (n.d.). Price Elasticity of Demand [Mackinac Center]. Mackinac Center: Advancing Liberty and Opportunity. Retrieved March 13, 2013, from http://www.mackinac.org/article.aspx?ID=1247

Price elasticity of demand enables business organizations to predict how their total revenue will be effected in the event they change the prices of their products. When a given good has inelastic price elasticity of demand i.e. Ed 1, then the percentage change in the quantity demanded is greater that the change in price. Thus, raising the prices of such commodities results to decline in the total revenue because the business may loss customers to their competitors. Nonetheless, reducing the prices of goods with elastic elasticity of demand increases the total

Over the past three weeks in the University of Phoenix Marketing Management class, I have completed three simulations based on real life marketing situations. The first simulation was titled, "Forecasting Market Demand." This simulation discussed the importance of determining the future demand for your product in the voice commanded software industry. The marketing team for the new Listensoft software needed to accurately forecast the production capacity of the new product and the pricing strategy. This task is especially difficult because human behavior is difficult to predict. Forecasting behavior "…is about generating numbers out of expectations, opinions, statements, prior patterns and a host of other subjective elements" (Forecasting

The company had some fixed and variable costs associated within the simulation. Fixed cost is the business world ball and chain. Fixed costs are always paid it never change because of activity. At one point in the simulation the population increased and the amount of apartments for lease rose to 3,000 from 2,500, which caused an increase in demand, and a supply decrease. When the sales price of an item decreases it is common practice for a business to decrease the price also to entice the consumers to buy the cheaper priced products. A product in high demand must be sold at full price by the company for maximized profit. Another example occurred when the price cap was set the tenants would have to pay the same amount of rent

When price elasticity of demand is elastic, the coefficient will be greater than one. When a percent price change occurs quantity demanded responds strongly there will be a large change in quantities consumers purchase. There is price sensitive in this scenario. If price elasticity of demanded is inelastic the coefficient will be less than one. When a percent price change occurs quantity demanded does not respond strongly then there is a slight change in quantities consumers will purchase. There a weak price sensitive in this scenario. Lastly, if price elasticity of demanded is unit elastic the coefficient will be equal to one. Whenever there is a percent change in price there is an equally matched percent change in quantity demanded. This scenario is rare.