Supply and Demand Simulation

ECO 365

Supply and Demand Simulation

This supply and demand simulation teaches how to respond to changes due to the shifts in the market. Whenever there is a change that means several factors that need to be looked at. A number of factors, including price increases or decreases, cause changes in supply and demand. If demand rises, the supplier should increase supply to achieve larger profits from increased sales at higher prices. An increase in the rental price of two roomed apartments caused a decrease in the demand of houses by a large margin. Suppliers were willing to supply more houses at higher prices and fewer homes at reduced rents.

A rise in the population of Atlantis led to a bigger demand for housing which then led the rise in rental prices. By...