Economics_561

Supply and Demand 1 The supply and demand in this week,s readings were a revisit on a few economic issues that we have yet to see the full impact of how the demand may overweight the supply in years to come. The supply and demand is a consent flowing concern with just the equilibrium balance being able to identity the correct supply and demand to equalize there profits and maximize on the rents for each apartment. When the new business came to town employing a lot of people with housing needs the change in supply made the demand of housing increase. There was almost a shortage of apartment housing. The market changed when the consumer s wages were the effecting concern. The wages were better so more people invested in the purchase of housing. It was a very smart move to make the abundance of apartment into a community of consumers that wanted to purchase housing such as condos. They are not only an affordable option for the general public but a very good option for the seller or operators also. The rates having to be reduced because of the governmental ceiling put on apartments was a concept to put a ceiling price on apartments which created a demand for the apartments that created a shortage of them. These are just a few of the bigger issues that have created a increase in supply or the increase in demands. Markets are very volatile to any type of influx of the consumers’ wants and needs creating a supply and demand. Decision making is a process that any supply and demand can have a large effect on. Your decision can leave you and the company holding the bag when it comes to surplus or scrambling in the market for product. The supply and demand in any market should be considered before the decisions are made and formulated. The four concepts of the simulation were as following: The law of demand-Quantity demand rises as price falls, other things stay constant Quantity demanded falls as price rises, other things stay constant The law of Supply- Quantity rises as price rises, other things constant. Quantity supplied falls as price falls, other things stay constant