Basic Concepts

ECO/415

September 6, 2010

Patrick O' Donnell

Basic Concepts

The Applying Supply and Demand Concepts simulation discusses the basic concepts in applied economics. The main goal of the simulation is to sustain the equilibrium point in the two-bedroom rental market as a property manager for Good Life Management (GLM) in the city of Atlantis. Pricing, customer predilection, and population have an affect on demand. Supply however, concerns the quantity of apartments, the amount of available apartments, and the amount of rented apartments.

In regard to the simulation, various issues are discussed, including the changes in supply and demand and the affect on the business environment, the significance of marginal analysis in decision-making, establishing suitable output...