Supply and Demand Simulation

The University of Phoenix Applying Supply and Demand Concepts Simulation (University of Phoenix, 2009) demonstrated the chemical mechanism of how depict and read operates in today?s market. The cloak used the housing market to show different scenarios and how affect and supply worked in these scenarios. This paper leave discuss the modeling and how different environmental factors affect supply and demand and how this affects finality making. Four key points of the simulation volition be discussed along with how the concepts can be used in a hospital food service environment. Price elasticity of demand and how it affects consumer decision-making will be looked at along with a summary of the intact simulation.

Scenario OneThe simulation portrayed GoodLife as a spot management company who employed the user as a plaza music director. Different scenarios were provided to the user in which the user had to use decision-making skills to nark the correct decision. The changes to the supply and demand were caused by several factors in the different scenarios. The factor in scenario one was the regional property manager, Hal, requested the property manager to bring down the vacancy rate from 28% to 15% and maximize the revenue. For the property manager to decrease the vacancy rate, prices needed to be lowered.



This upholds the law of demand which states the higher price of a product, the less demand for the product. The renting rate of the apartments was reduced to $1050 which reduced the vacancy rate to 15 %. The revenue increased from 1.56 to 1.49 % and although the revenue increased initially, the revenue will hit a peak and decrease. The apartments quantity demanded went from 1200 to 1700 while the wasted decreased from 800 to 300.

Scenario TwoThe change in scenario two that affected the supply and demand was Susan?s...

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