Supply and Demand Simulation Essay Example for Free

Supply and pauperization Simulation EssaySupply and make is the common sense principle which defines the generally observed relationship between demand, fork up and harms as demand increases the price goes up which attracts new suppliers who increase the supply speech the price back to normal (Law of Supply and Demand, 2010). A surplus in the market exerts a down(prenominal) mechanical press on price eyepatch a shortage in the market exerts an upward pressure on price. In the supply and demand computer simulation Goodlife has control of the apartment rental community is Atlantis. In the first year Goodlife wants to bring down the vacancy ordinate to about 15 percent while maximizing revenue. Goodlife must lower the make up of rent in order to lower the vacancy rate but they have to make sure they dont lower it too much or they go out decrease their revenue so they must find at what rental rate they will lower vacancy but no lose revenue. As the years go by several(pren ominal) things affect the supply and demand of the Goodlife Company, population increase, individuals wanting long-term housing and a price ceiling.Shifts in supply and demand affect decision making by causing the caller-out to look at how to get the greatest revenue with the changes. The supply and demand simulation went over several key points that were alike part of our textbook reading such as total revenue and demand, individual and market demand, bulls eye price elasticity and shifting supply and demand. Total revenue and demand is the ability for a company to tell whether the total revenue will go up or down when they raise or lower their prices (Colander, 2008).Individual and market demand refers to how individuals may stop buying a product imputable to a slight rise in cost, the market demand is influenced both by how many great deal drop out totally and by how much an existing consumer marginally changes his or her quantity demanded (Colander, 2008). pass across price elasticity of demand is when the price of a product goes up and it positively impacts the demand of another(prenominal) product. Shifting supply and demand is the ability of the company to shift supply to meet demand and hold up equilibrium.At Regence BlueCross BlueShield supply and demand affects the cost of premiums as well as the type of benefits addressable on plans. It is important in healthcare to figure out which benefits are sought after and what it will cost to cover those benefits, by slimming down on the benefits that are used less then they can win benefits that individuals want at a lower cost than if they supply all benefits. One example of this is position limitations of such benefits as chiropractic or physical therapy while increasing the benefits for preventive care.Price elasticity of demand affects the decision making of the consumer and of the organization by changing the amount of a product available as well as the price of the product. Consumers will swit ch products if they are unable to find the product slow or if the price is higher than a similar product. Organizations must continue to shift the supply and price of a product in order to stay competitive and still make revenue.In the simulation I learned how to maintain equilibrium with supply, demand and price while maintaining company revenue at the highest rate. Goodlife must keep changing the availability and price of the apartments in order to keep up with supply and demand and maintain revenue, one way they did this is by turning some of their apartments into condos this decreased the number of apartments available but brought in revenue in a different manner.