Supply and Demand

Changes in Supply and Demand Supply and posit argon both(prenominal) affected by scathe levels, specifically the touchstone of a service or good supplied or demanded. In the University of genus Phoenix simulation (2011), the first objective was to determine the ideal lease rate for GoodLifes two-bedroom apartments, and observe the step demanded when the rates are increase or decreased. At the chosen rate of $900, quantity demanded for the apartments increased, but there were still many apartments available for lease. In order to maximize lucre for GoodLife and capitalize on the increased demand, the rental rate should have been increased. For suppliers, as the price of a service or good increases, there is more fillip for a supplier to supply more. With quantity demanded still on the rise for GoodLifes two-bedroom apartments, consumers are volitioning to pay a higher price for rent. In addition, the company receives higher profits when it supplies more in response to the demand. However, as prices continue to climb, consumers will begin to lose interest and quantity demanded will fall, suppliers so must determine how much to supply that is equal to the quantity demanded. When the level of quantity demanded equals quantity supplied, the market is in a state of equilibrium.

Decreasing the monthly rental rate to an center that was acceptable for the consumer and GoodLife allowed the company to continue renting all of its apartments charm maintaining profitability. Shifts in Supply and Demand There are various factors that buzz off the supply and demand curves to shift either to the left or right. When consumers have a change in income, tastes, or the price of other goods change, these factors will have an effect on demand and cause a shift in its curve. For example, losing your job has a negative impact on ones income. The things that he or she was once able to afford, even if it wasnt a luxury, may no longer be purchased or the consumer may find a cheaper... If you want to get a fully essay, order it on our website: Orderessay

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