Eco 365 Week 2 Supply And Demand Simulation

Supply and Demand Simulation ECO/365 September 24, 2012 Supply and Demand Microeconomics Using the microeconomics principal of the shifting in supply and demand we learn what is needed in the market place to be competitive in pricing or market economy. The single family income is what the company can use to determine how best to maximize their profits. The community growth and the rate of inflation in conjunction with the single family income can set the rental rates and keep the units at full capacity. Supply and demand are the fundamentals of renting apartments. These are microeconomic concepts that will keep businesses in business and this applies to every type of business not just apartment complexes. The local hardware store stocks their shelves using the laws of supply and demand. The store provides the items that are called for by the customer. Macroeconomics Macroeconomics look at things a bit differently. Macroeconomics look at the long term overview of the economy and what is needed to make the business profitable. Macroeconomics look at the future such as selling apartments as condos or the fact that people have a higher income and are looking to purchase a home rather than rent an