Microeconomics and the Law of Supply and Demand Essay

During the wile of Goodlife Inc. I was fitted to protrude how the effects of a lower rent verses a higher(prenominal)(prenominal) rent had on the void percentage. In our simulation the t ingestspeople of Atlantis had only one rental function with apartments lendable. There were single family homes available too but the contract for contract was with apartments. I got to see how the fork over and take on worked with this rental property simulation. The town of Atlantis saw a rise in population which led to a higher aim for vacant units. This caused Goodlife to raise its rent to meet the ripening need for its available units. still as the demand for renting the units go away so did the demand. This meant Goodlife had to lower its rental legal injury to meet the lesser demand for renting. This is a good example of microeconomics.When I looked at the simulation for examples of macroeconomics I found it when the government stepped in to put a cap on the rent amount. In the simulation there was a survey that showed individuals were victuals outside of Atlantis rather than renting a place in the metropolis limits where they work. As many of us do currently in our own withstands we usually cant afford to live in the city or compass where the best jobs are. I am a native example, I commute 50 miles one way to work as its where the best salary is. I live in an area where housing and rents are affordable and the overall cost of living is cheaper too. In the simulation, the government put a cap of $1550 for the monthly rent of a two bedchamber apartment. This was meant to allow middle class families and individuals the opportunity to live where they work. Because of the rent cap, Goodlife didnt rent out every apartment available as profits would not be able to keep up with the maintenance cost of having every unit rented.When we look at what a shift in supply and demand curve we see that clear when Lintech Inc. moved into Atlantis creating much jobs . As soon asLintech did this it increased the population of Atlantis which was the shift in the supply curve. This was a negative impact for Goodlife as there was more population driveing apartments and not enough two bedroom apartments available. The demand curve now goes up because of the population growth and need for more apartments.With Lintech moving into the city and the population now increasing the demand it means that the quantity demand is now more than quantity supplied at the original offset. This similarly caused a temporary nobbleage in the foodstuff of two bedrooms apartments in Atlantis. Rental rates went up due to the higher demand. Also quantity demand come downd and quantity supplied increases which leads to a decline of apartments or shortage of apartments. To get to the cutting equaliser the adjustment take to get between the new demand curve and the original supply curve. When the new equilibrium is reached the rental rates are now higher than they w ere forward. This also means that the number of apartments that are demanded and the supply of apartments has also increased.I can apply this supply and demand to my workplace job. When I extradite a customer that wants to ship more packages with us on a new daily bases I make water to look at the new demand. Before their demand for deportation more I didnt need extra couriers and trucks to handle the days deliveries. Now with the new demand I render to get my supply of couriers and trucks at the last minute. This causes me to have to spend more money to rent more vans and hire more employees. Overall my cost go up with the demand of more shipping packages, but so does my profit as I am able to use more supplies to handle the new demand.To better understand how the model of microeconomics helps me understand the factors that affect shifts in supply and demand on the equilibrium price and quantity I have to look at the competitors and their prices. The command for the competit ion and where it comes across the equilibrium is the point at which the new equilibrium is now. But under the view of macroeconomics it is seen when the jobs and population grew. This effected the increase and decrease on the available apartments. Now the equilibriumfor rentals is higher then it was before the move in by Lintech. So is the number of apartments demanded and supplies has increased.In the simulation we saw how with lower prices meant that the demand was higher. But with the demand for apartments came higher prices. But if the price was to increase too much the demand for apartments would decrease. There is also a possibility that it could remain the same over a short period of time, then decrease if prices didnt change.This simulation showed lots of possibilities that could exists in todays world, or at least in Atlantis. We see what price could do to supply and demand for apartments and what demand could do to price and supply. When either is moved or switched leads t o various outcomes the will lead an deliverance like Atlantis to either run out of its supply of apartments or have an increase in supply of apartments because the prices are too high.ReferenceMicroeconomics, 9th Edition, David C. Colander (2013) University of Phoenix