Premium Essay

Eco 365 Week 2 Individual Assignment

In: Business and Management

Submitted By kyasmom005
Words 705
Pages 3
Microeconomics and the Laws of Supply and Demand
Megan O’Brien
ECO/365
1/19/2015
RIna Bills

The simulation on supply and demand relates to the Goodlife Management Company which leases apartments to renters. As the property manager, I was asked to set rental prices in a variety of situations in order to meet the demands of the population in the area while attempting to maximize profits for my company. Microeconomic principles such as the law of demand, the law of supply, equilibrium, and price ceilings were all factors in determining price. Macroeconomic principles such as the consumer price index and fiscal policies which can institute price ceilings also related to this activity. Goodlife was considered a monopoly in the market in the area of Atlantis because it was the only rental company. In the first simulation, I was asked to lower the rental rate to increase quantity demanded and lower the vacancy rate. I was successful in increasing demand but was unsuccessful in maximizing revenue. However I was successful in determining the equilibrium rental rate and equilibrium quantity. This can be done by finding the point at which the supply curve and demand curve intersect and there is no shortage or surplus. A new company, Lintech, then moved to the area increasing the population and increasing the demand for apartments. Supply decreased and left a shortage of apartments. Was correct in identifying the increase in rental rate and demand by was incorrect in identifying the impact on supply. Employees of Lintech then began purchasing detached homes as opposed to renting apartments which decreased the demand for apartments. The equilibrium rate was $1,300 and supply and demand were equal at 2250. More companies came to Atlantis, increasing the population again but the government instituted a price ceiling of $1550. While the demand increased, the price…...

Similar Documents

Free Essay

Week One Eco/365

...Article Analysis of Food Consumption ECO/365 Food consumption and the prices of consumptions have affected the American population in many ways. Prices have changed and accounted toward the increased prices in food consumption for the American population. Many factors have affected the price increases and types of food that are consumed. Simplicity and availability have also played a huge role in the elasticity of food consumption.   The utility derived from food consumption is the preference and satisfaction of the food itself, means of obtaining the food as well as the cost of food. In the case of food consumption, restaurants have grown in significant numbers. One example of this is McDonalds, starting in 1940 with only one restaurant where as today there are more than 31,000 restaurants, serving more than 68,000 people every day (About McDonalds, 2012). In over 60 years the consumption in just this one example has surpassed expectations with leaps and bounds and has lead to the cost of consumption along with supply and demand. More people equal more consumption in all things food. Food consumption is a necessity and with today’s busy lifestyle food sources have become readily available. The market for food has increased as has the desire to make food consumption easier. Simplicity has taken over the busy lives of Americans and the food industry has run with this concept. In grocery stores simplicity is everywhere, from individualized servings to family...

Words: 1037 - Pages: 5

Premium Essay

Eco/372 Week 2 Assignment

... * Nominal GDP- A gross domestic product (GDP) figure that has not been adjusted for inflation. * Unemployment Rate - The percentage of the total labor force that is unemployed but actively seeking employment and willing to work. * Inflation Rate - The rate at which the general level of prices for goods and services is rising, and, consequently, purchasing power is falling. * Interest Rate - The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). Running head: Fundamentals of Macroeconomics Paper Fundamentals of Macroeconomics Paper – Part 2 Fundamentals of Macroeconomics Paper – Part 2 Purchasing of groceries affects the households, government and businesses. The households demand for the groceries is determined by the need and the prices at which the groceries are sold at any given time. Purchasing of groceries satisfies the consumer need for consuming the commodity. In addition, the consumer disposable income is reduced therefore the consumer is constrained in consuming other commodities. On the other hand, businesses are also affected by the purchasing of groceries. For instance, they get high income from the purchases. However this depends on the demand and supply of the groceries. If the demand for the grocery is high and supply is low then the businesses have more income (Welch, and......

Words: 1339 - Pages: 6

Premium Essay

Eco 365 Week 4 Individual Assignment

...Running Head: Market Structures Differentiating between Market Structures Simulation University of Phoenix ECO 365 08/19/2013 There are many advantages of the supply and demand forces on the market and the way it operates. An important advantage is their market regulating utility. They help encourage competition and charge more and therefore make bigger overall profits. Consumers are willing to pay more for better products even though this trend differs in other market structures. One of the major limitations of supple demand forces is a socially undesirable outcome as in the case of a market structure that is characterized by monopoly. This is where one single firm will control all production resources and therefore has exploitative capabilities in the terms of pricing and promoting. One example can be that of an electric company that has a virtual monopoly over production resources of a specific region and charge whatever prices they want. Coca Cola Co. is ran in a beverage industry that is highly concentrated oligopolistic. They compete directly with another major company, Pepsi Co. These two companies hold over 98% of the beverage market in all of the United States. Both Coca Cola Co. and Pepsi Co. compete globally don’t have much competition knocking on either of their doors. Cadbury-Schwepps owns the remaining 2% of the US market share but it’s a struggle for them to try and expand share as well as getting more attention. Oligopolistic market...

Words: 1001 - Pages: 5

Free Essay

Uop Week 2 Individual Assignment

... Running Head: Strategic Plan, Part I: Conceptualizing a Business Strategic Plan, Part I: Conceptualizing a Business Name BUS/475 - Week Two Introduction Mission, vision, and value documents offer guidance theories to make organization’s strategic plan. Companies make their corporate, business, and tactical strategies as well as goals. The provided document gives a comprehensive research on the mission and vision statements of Ace Gym and how are these documents useful in developing the company unique and effective from its rivals. It will additionally spotlight key values through mission and vision declaration. These values assist in leading the strategies and therefore increase earnings, sustain edge against your competitors and satisfy stakeholders. Analysis The business plan entails establishing a web based Gym, called Ace Gym. This IT based company provide useful services at a cost of $ 1 a month for daily fitness regime personalized to customer requirements. The offer will also incorporate interactive classes with a teacher who will make a physical fitness and health program for you on information gathered from the customers. Then teacher will monitor the diet plan and exercise plan through an automatic attendance system. Mission Statement ❖ Industry: Online Service Industry with Expertise in IT as well as Health ❖ Product: None ❖ Service: Physical fitness and health guidance on weight exercise diet plans, as well as health......

Words: 1209 - Pages: 5

Premium Essay

Week 2 Individual Assignment

...Fine Foods Frequent Shopper Program collects from individual customers will be used to develop targeted offers and high value incentives to participants in the program. Before the design and implementation of this system can begin, there are many potential legal, ethical, and informational security concerns related to the development of the program that must be considered by management. Also, the effect this program will have on the organization’s structure must be considered. As stated previously, there are many legal concerns related to the implementation of Kudler Fine Foods' frequent shopper program that must be considered by management. “Most American and European privacy law is based on a regime called Fair Information Practices (FIP)” (Laudon & Laudon, 2010 p.132). The core principles of the report are already inline with Kudler Fine Foods’ Privacy policy, as outlined on the terms and conditions page of the website. By continuing to follow this policy, Kudler Fine Foods will be able to continue to avoid lawsuits from individuals, or fines from government agencies. Ethics and perception are larger concerns for Kudler Fine Foods, in part because of their customer base. Higher end customers, with delicate sensibilities, will be more concerned about how their personal information will be used and equally as concerned about surrendering their right to privacy. It is a commonly accepted practice that individuals whose information is being collected have the......

Words: 932 - Pages: 4

Premium Essay

Acc492 Individual Assignment Week 2

...Week 2 Assignment from Text – Jamie Oswalt 16-33 a. The payroll procedures at the Galena plant do contain some shortcomings. The first one is that the supervisors in the production department are not approving actual hours. Another one found is that payroll clerk seems to be in charge of most duties, which clearly signifies a lack of segregation of duties. Finally, the employee from the personnel department should not be the one to have access to the payroll checks and hold them until time for delivery. In order to fix these shortcomings and improve the internal controls of Galena’s payroll procedures, there are certain changes that should be made. All employees should sign off on their own time cards and then give the time card to his or her immediate supervisor for approval. There should also be at least two payroll clerks with different duties. One should prepare the information that will need to be processed through the payroll data processing. Another should be the one to reconcile the time cards and the payroll register. The payroll clerk should not be authorized to void and reissue checks. This should be approved at the management level. The payroll checks should be given to the accounting department for safe keeping instead of the personnel department. b. All of the shortcomings mentioned above could lead to material errors and irregularities. The lack of the segregation of duties is a material weakness. The payroll clerk could easily submit false or......

Words: 661 - Pages: 3

Premium Essay

Psy103 Week 2 Individual Assignment

...Resource: Visualizing Psychology Read questions 1, 2, & 4 located in Critical and Creative Thinking Questions in Ch. 4 of Visualizing Psychology. Answer each question in at least 50 words. 1. Sensation and perception are closely linked. What is the central distinction between the two? The central distinction between the two are: Sensation is the way we receive information through our five senses (sight, smell, touch, hearing, taste) and relays that information to the brain through our sensory receptors, neurons then carry this information to the brain. Perception is how we interpret that information and translate it from our sensory receptors to our real world environment. 2. If we sensed and attended equally to each stimulus in the world, the amount of information would be overwhelming. What sensory and perceptual processes help us lessen the din? We have sensory receptors that are specialized for sensory reduction. This is the process where our sensory receptors are filtered and analyzed before being sent to the various parts of the brain. Once the information travels to the brain there is a coding process that differentiates between the various stimuli and perceives this information before sending that information through to various parts of the brain. This process helps lighten the load on the brain from having overwhelming information being sent to the brain all at once. 4. What senses would likely be impaired if a person were somehow missing all of ......

Words: 312 - Pages: 2

Premium Essay

Eco 365 Week 2 Assignment

...* * * * * * * * * * Supply & Demand Simulation * Anthony Ford Jr. * ECO-365 * APRIL 14th, 2014 Joe Krupka * * * * * * * * * * Introduction Microeconomics involves the study of individual economic agents and individual markets. Macroeconomics involves the study of economic aggregates. Supply and demand is the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price. The concepts were well displayed during the supply and demand simulation. For example, the competition that Oakridge Builders provided was a microeconomic concept. The same can be said for GoodLife having a monopoly on selling apartments. Economic competition takes place in markets--meeting grounds of intending suppliers and buyers. Typically, a few sellers compete to attract favorable offers from prospective buyers. This is why it is a microeconomic concept. * A monopoly is an enterprise that is the only seller of a good or service. In the absence of government intervention, a monopoly is free to set any price it chooses and will usually set the price that yields the largest possible profit. Just being a monopoly need not make an enterprise more profitable than other enterprises that face competition: the market may be so small that it barely supports one enterprise (University of Phoenix,  2010). * A price ceiling is a......

Words: 793 - Pages: 4

Premium Essay

Week 2 Individual Paper Eco/372

...Week 2 Individual Paper University of Phoenix Principles of Macroeconomics ECO/372 Week 2 Individual Paper To understand the economy of a country, a person must understand the Gross Domestic Product. The Gross Domestic Product, or GDP, is an economic indicator that measures the total output of products and services of a country (Amadeo, 2014). The GDP includes all products and services produced by every company in that country (Amadeo, 2014). The Gross Domestic Product is separated into several components. One component used to measure GDP is nominal GDP. Nominal DGP indicates the absolute output of a country and is measured quarterly by the Bureau of Economic Analysis (BEA) and is the raw measurement that estimates price increases of products into the GDP (Amadeo, 2014). The BEA must adjust the estimates monthly when updates are received to remain accurate (Amadeo, 2014). Real GDP compares one country to another and is calculated by removing the effects of inflation on products and measures the increase in prices from a year to year (Amadeo, 2014). Real GDP will be lower than nominal GDP because a price deflator is used (Amadeo, 2014). The price deflator is determined by comparing the current-dollar ratio of a series to the corresponding chained-dollar value, and multiplying it by 100 (U.S. Department of Commerce Bureau of Economic Analysis website, 2009). Additional factors that affect the GDP are the unemployment rate, the inflation rate, and the interest rate...

Words: 1044 - Pages: 5

Free Essay

Eco 372 Week 2 Individual

...companies, their employees and vendors with most everyone at every turn paying taxes. Prices tend to rise as spending increases. It is in essence a continuous cycle or movement of funds from one person or entity to another. During a recession households may reduce their spending on items such as grocery purchases by limiting their spending to the few items they deem necessary. When people start to hold on to their money instead of spending it, money is pulled out of the economy. Businesses such as grocery stores see less income and may cut back on employee’s hours or even lay off employees. Less tax revenue is generated and government spending may tighten. Government programs may be cut and additional employees will see layoffs. Individual spending tightens more, prices fall and the ripple effect on retailers continues to grow. There are many steps the government can take to stem the tide of the slowdown and increase costs thus putting money back into the economy and increasing spending. The United States government may subsidize crop production, such as corn, which is used not only as a food source but also as a bio-fuel. Subsidizing corn takes corn out of the food supply and causes in increase in corn prices. Another aspect revolving around corn production is that the World Trade Organization (WTO) may place limits on the amount of corn that the United States can subsidize and store in stockpiles causing a reduction in the food supply increasing volatility in......

Words: 564 - Pages: 3

Premium Essay

Eco 365 Week 2 Lt Organization Industry Overview

...This archive file includes ECO 365 Week 2 Learning Team Organization Industry Overview Introduction For many years, people across the United States has sought out ways in which to make money, and at the same time, provide for people a place where they can go and buy the necessities they need. Entrepreneurs from across theUnited Stateshad ideas that seemed logical, but in actuality were not. Stores, business, and companies have been built, only to last for a short time. Not every store or business built has been successful. Business - General Business Individual SDLC Value Paper Write a 700- to 1,050-word paper that explains the components of a formal SDLC process.  ·  Includea discussion of the basic elements of the SDLC.  ·  Identify types of employees involved in the SDLC process and their roles (project manager, system analyst, developer). Include a minimum of 2 references relevant to the assignment, in addition to the textbook. Format your paperconsistent withAPA guidelines. Individual Work-Related Project Analysis, Part I Writea 1,400- to 2,100-word paper that analyzes a work-related project using systems analysis for a selected business system at the departmental or divisional level from your workplace, an organization, or a case study (which doesn’t have to be a health care facility). ·  Includea discussion of the information-gathering techniques and design methods......

Words: 354 - Pages: 2

Free Essay

Eco 365 Week 4

...Differentiating Between Market Structures Jeffrey Henkel ECO/365 December 8, 2014 Hubertus Puaha Off-roading has become a favorite past time lately and one company that speaks volumes for the industry is Four Wheel Parts. They have cornered the market not only here in the United States but in the World. In order to minimize cost and maximize profit they have outsourced one of their sister companies to china to create competition with their rival companies by reducing labor cost. By doing so there were able to increase revenue by having reduced market prices. Many of the techniques they use are similar to companies in different markets and are the leading reason to why they have become the giants in the off road industry. Although there are several stores out there that cater to the off road needs of the greater United States Four Wheel Parts has singularly set themselves apart from all the rest and formed an oligopoly in the market structure of the off road industry. Even though there are several other companies out there that compete with Four Wheel Parts they have had the competitive edge that has set them apart ("4wd Parts", 2014). I choose Four Wheel Parts because they have taken over the market for off road supplies and have opened numerous retail stores all over the nation to cater to the American public. Not only do they offer aftermarket accessories but a number of mechanical upgrades as well. They can upgrade all the OEM stock parts to a......

Words: 1560 - Pages: 7

Premium Essay

Eco 365 Week 2 Individual

...Supply and Demand Simulation ECO/365 Supply and Demand Simulation The supply and demand simulation included both microeconomics and macroeconomics concepts. The simulation focused on a property management firm, GoodLife Management, and its ability to adjust the levels of supply and demand of two-bedroom apartments in the Atlantis community. GoodLife Management was challenged with changes in population, tastes, income, and a price ceiling. As a result of these factors the firm had to strategize about shifts in the changes in supply and demand and determine the equilibrium price and quantity. The microeconomic principles from the simulation include the supply and demand of two-bedroom apartments and the affects of price. The simulation provided exercises on how to determine the number of apartments supplied, the population that demanded the apartments, and the appropriate price per unit at a given time considering market conditions. Microeconomics looks at the smaller picture and focuses on how individuals and firms make decisions based on economic forces. GoodLife Management had to consider how many apartments to supply and the price levels to charge for them to maximize profit (University of Phoenix, 2011, Week Two Simulation). Macroeconomics views the aggregate economy in terms of unemployment, growth, business cycles, and inflation. In the simulation, two macroeconomic concepts considered are the population growth in Atlantis and business cycles. GoodLife...

Words: 1057 - Pages: 5

Premium Essay

Eco/365 Week 2 Assignment

...Supply and Demand Simulation ECO 365 May 14, 2012 Supply and Demand Simulation With my simulation, I chose to have a vacancy rate of 5 % which maximized revenues at $ 1.81 million. When facing a falling or rising demand, I aimed for equilibrium price as determined by the intersection of both the supply and demand curves. When a price ceiling was implemented, I could only supply a limited number of apartments at the predetermined price. The market forces of demand and supply are the best way to determine optimal prices for both producers and consumers. There are several factors that cause changes in supply and demand. One significant factor is price increases or decreases. In this particular simulation, incremental decreases in rental prices caused a significant increase in the demand for houses. Similarly, an increase in price of two bedroom apartments caused the demand for houses to increase significantly. Suppliers were naturally willing to supply more homes at increased prices but fewer when rents were reduced. As the population of Atlantis began to rise from the expansion of tech companies and the like, the demand for housing grew significantly. This caused rental prices to rise as demand began to outweigh supply. Consequentially, suppliers became eager to offer a greater supply of units at a lower rental cost. These basic laws of supply and demand as well as the determining pricing factors are examples of microeconomics at play. Consumer preferences and...

Words: 590 - Pages: 3

Premium Essay

Bsa 375 Week 2 Individual Assignment

...Week 2 Individual Assignment As one of the program outcomes for the Bachelor of Science in Information Technology program, students must apply the principles of systems analysis and design to fundamental business systems within the organization. The final individual paper for this class includes three sections; the final section is due in Week Four. One section of the paper is due each week. Complete Section 1 of the Service Request SR-rm-022 paper. Using the Service Request SR-rm-022, analyze the HR system. Prepare a 4- to 6-page paper that accomplishes the following: • What key stakeholders in Riordan Manufacturing would you gather requirements from? • Describe the information-gathering techniques and systems analysis tools you would propose for the project. • Identify the key factors that help ensure the information required for the project is gathered successfully. • Explain what project scope is and why it is important. Describe the areas of project feasibility that are examined in the analysis phase of the SCLC. • Cite and discuss 2 to 3 references, in addition to the required readings, that are relevant to the assignment. Include citations and references formatted consistent with APA guidelines. Submit Section 1 of the final paper. Week 2 Individual Assignement The Riordan Manufacturing Company has submitted a service request to analyze the human resources department. The goal of this analysis is to integrate the......

Words: 1219 - Pages: 5

Knives, Swords & Blades | sm31592413 | Bear Making, Repair