IntroductionSupply and Demand Simulation involves acting as a property manager for GoodLife Management, a property management company that manages apartment complexes in Atlantis. This simulation was an exercise in applying the concepts of supply and demand based on current market trends. The property manager is required to adjust the monthly rental rate for two-bedroom apartments for rent and the number of apartments available. Supply and demand within the simulation were manipulated by rates charged for rentals, economics, income, and personal choices. All of these characteristics affect the proportion of vacant and occupied apartments.SimulationsAt the start of the simulation, GoodLife Management had Atlantis' monopoly on two-bedroom apartments and could therefore lower the rent to increase quantitative demand and increase the company's revenue. property. management company. This decision ultimately resulted in a low apartment vacancy rate. Once income peaks, demand declines. The solution is to decide at which rental rate level provides the highest possible returns with low vacancy. The next section of the simulation introduced the concept of a supply curve to present the price needed to rent all the apartments on offer. More apartments were provided as soon as rental rates increased. “The law of supply states: Quantity supplied increases as price increases, all else constant; The quantity supplied decreases as the price falls, all else constant” (Colander, 2006, p. 97). A higher rental price incentivizes more rentals to be offered, which would be a cost advantage for GoodLife Management as it would cover all maintenance costs allowing all apartments to be rented on paper.... .. ...not too many problems. When asked to make adjustments that would affect supply and demand, this student made the changes based on the given factors. The four key points first introduced in the class assigned text by D. Colander were reinforced in the simulation of equilibrium, supply and demand, price ceiling and demand shift and of the offer. This student actually did the simulation more than once in order to fully understand the concept of supply and demand.ReferencesColander, David C. (Ed.). (2006). Economics (6th ed.). . [Custom edition electronic text from the University of Phoenix]. Burr Ridge, IL: Irwin/McGraw-Hill, 2006. Retrieved November 13, 2008 from ECO/360.University of Phoenix, (2008). Application of the concepts of supply and demand. Retrieved November 13, 2008 from University of Phoenix, rEsource, Simulation, ECO360 - Economics for Business I, student website.