This website uses cookies to ensure you have the best experience. Learn more

Supply And Demand Essay

836 words - 4 pages

Supply and Demand

Goodlife Management was the only firm in Atlantis that rented apartments. This gave Goodlife Management an advantage in the housing market. Detached rental homes owned by Oakridge Builders were the closest substitute to the apartment rentals. Without a substitute for rental housing in the Atlantis area, Goodlife Management maintained a monopoly in this market. Many factors cause changes to the supply and demand of a product or service. Companies need to make adjustments to pricing, supply, and demand to reach the equilibrium.
Microeconomics
With a vacancy rate of 28% Goodlife Management made the decision to lower the rental rates decreasing the vacancy rate ...view middle of the document...

Although microeconomics and macroeconomics focus on different things, both allow a company to grow and succeed in the economy.
Supply Curve Shift
Income levels increased in the Atlantis area after the population increased. With the higher income levels many people preferred the detached home rentals to the apartments. The decrease in demand resulted in Goodlife Management converting some apartments to condominiums and selling the condominiums. The supply was also decreased and shifted to the left. To reach equilibrium Goodlife Management had to raise rental rates.
Demand Curve Shift
When the demand quantity increases and the supply quantity remains the same the rental rate increases to meet the new demand. More people demand the apartments but the supply remains the same causing the demand curve to shift to the right. Goodlife Management was not willing to lease the number of apartments demanded at the current rental rate. The company, however, was willing to lease the apartments demanded at an increased rental rate. The increase causes an upward movement along the supply curve. Increasing the rental rate decreases the quantity demanded and increases the quantity supplied allowing a reduction in the shortage. The adjustments continue until the point of equilibrium. The new equilibrium has resulted in higher rental rates, increased demand, and increased supply.
Supply and Demand at the Workplace
Understanding how supply and demand of a product effect each other and price allows each employee to make proper adjustments to meet the needs of the company and customers. When the supply exceeds the demand, prices will need to be reduced to reach equilibrium. When the...

Other assignments on Supply And Demand

Supply Chain Essay

1621 words - 7 pages uncertainty 2. Understanding the supply chain capabilities 3. Achieving strategic fit • Understanding Uncertainty the Customer and Supply Chain • To understand the customer, a company must identify the needs of the customer segment being served • Customer demand from different segments may vary along several attributes: 1. The quantity of the product needed in each lot 2. The response time that customers are willing to tolerate 3. The variety of

Termpaper

801 words - 4 pages Supply and Demand Simulation ECO/365 July 31, 2013 Robert Watson Supply and Demand Simulation This paper is about the supply and demand simulation from University of Phoenix student website. The simulation is about Good life Management, a real estate property management company that controls the seven apartment complexes in the city of Atlantis. In the nine-year period in the simulation the housing market has increased and decreased

Bullwhip Effect

301 words - 2 pages 9/27/2010 I. Product Availability The Bullwhip Effect does impact the supply chain performance measure of product availability, when the demand is overestimated due to BWE, there is an increase on the PA. When the demand is underestimated due to BWE, there is a decrease on the PA. Amplification (demand inflation) can increase service level at least on a temporary basis because there will be more supply produced to keep up with demand

Econ

352 words - 2 pages Associate Level Material Appendix B Price Elasticity and Supply & Demand Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity |Event |Market affected by event

Eco 550 Exam

836 words - 4 pages , capital D) Land, labor, capital, technology 14) The best definition of the subject of economics is A) How choices are made under conditions of scarcity B) How money is used C) How goods and services are produced D) How businesses maximize profits 15) Complete the statement with "supply" or "demand": A maximum price below the equilibrium price causes excess ________, while a minimum price above the equilibrium price causes excess

Conclusion And Future Model For Supply Chain - Toyota

528 words - 3 pages Conclusions and Future Model The auto industry has been a global business for a long time. The last few years how much a problem in just one of those regions, however, can affect everyone in the industry. When assessing the strengths and the weaknesses the most prevalent issues arise around demand for the product and external factors. Demand Risk Demand risk is the downstream equivalent of supply risk and is present on the demand/outbound

Beer Game

291 words - 2 pages Q1.How did you manage the decision process throughout the game? How do you analyze your results? Do you feel you were successful in terms of backorders as well as levels of inventories (0,5 page max)?  We can’t increase or decrease the order imminently. According to the demand by retailer and supply by distributor under the shipments state. I think our backorder is too high because we can’t get the enough products from the distributor. For

Barilla Spa Case

1295 words - 6 pages supply chain based on accurate demand information that is neither biased by the distribution and retail center’s perception of customer demand nor by Barilla’s ability to deliver on these biased demand estimates. In effect, Barilla has taken on the vital task of matching the supply from the production and distribution network with the demand from the end customer, which enables Barilla to mitigate the bullwhip effect significantly. Allocating

Economics

1190 words - 5 pages , for example, in the short period when a given quantity of a perishable commodity is brought to market and must be sold at any price or go to waste. In a slightly different meaning of supply, again in the short run, it may apply to a service such as housing or, even in the long run, to the services of a permanent resource such as land.) 3. Plot this supply schedule on your diagram and label it S1. Determine the equilibrium price where demand

Ssss

274 words - 2 pages provide information to the manufacturer on the level of demand for the product, and also provide feedback to the customer on promised delivery schedules. Supply chain management software provides reporting modules to track both current demand and answer a range of ‘what if’ questions to assist in the prediction of future demand depending on changes in strategy.

Economics

595 words - 3 pages Axia College Material Appendix B Price Elasticity and Supply & Demand Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity Event | Market affected by event | Shift in supply, demand, or

Similar Documents

Supply And Demand Essay

501 words - 3 pages Topic: Supply and Demand Julian Johnson Introduction to Business October 14. 2012 Supply and Demand There are several factors, which affect the demand and supply of goods and services, in any given market. Changes in these factors usually shift the demand and supply curves accordingly. A fast food company operating in a given location essentially depends on supplies of fresh farm produce. Consequently, they use the supplies to prepare

Demand And Supply In The Macroeconomy

2372 words - 10 pages Demand and Supply in the Macroeconomy ECON 372 Demand and Supply in the Macroeconomy The current state of our economy in the United States is no secret to anyone. In the United States over the past couple years, the economy has been lower than ever and not increasing as it should. Gas prices are at an all time high, home prices are at an all time low, and unemployment rates continue to stay on the rise. We’re still the largest and

Supply Demand In Gas Price Essay

3605 words - 15 pages , distribution costs, marketing costs, and federal, state, county, and local taxes. Gas prices also fluctuate because of oil supply disruptions, refinery disruptions, political factors, demand, and world conflicts like the Ukraine Crisis, Gaza Strip bombings, and now ISIS terrorists in Syria. Demand Determinants In economics, demand is defined as the goods and services people are willing and able to buy during a certain period of time at

Law Of Demand Essay

400 words - 2 pages Law of demand: the principle that there is inverse relationship between the price of good or service and the quantity the buyers are willing to purchase in a defined time period, ceteris paribus. First what is the Difference between 1. Change in quantity demanded and changes in demand. 2. Change in quantity supplied and change in supply? 1. Change in quantity demanded: Changes in price occurs change in quantity demanded, along the curve. 2