Supply and Demand Simulation Supply and demand play a complex role in the quantity, price, and availability of products and services. The simulation of the application of supply and demand concepts guides users in making decisions for Goodlife, a 2-bedroom apartment management company in Atlantis. The simulation appoints the user as property manager; responsible for vacationing residents, new unit prices and advertising. The property manager makes decisions under circumstances that include changing supply levels, demand curves, microeconomics, macroeconomics, and price and quantity equilibrium. All of these decisions move the company forward as conditions around it change. Shifting Demand Curve Lintech Expansion The demand curve follows a distinct line unless some other factor causes the line to shift. The demand curve works according to the principle: if demand goes up the price goes down, and similarly if demand goes down the price goes up as long as all other things are constant. A shift in the demand curve indicates that something is not constant. In the simulation, a company called Lintech has expanded its operations to Atlantis. The increase in the population of Atlantis changes the demand for apartments, but does not change the supply of apartments in the area. The sudden shortage of apartments has created a shift in the demand curve. The change allows Goodlife to offer a higher price point for its 2-bedroom apartments and still fill the same number of units. By increasing the price, Goodlife brought price and available quantity back into balance (University of Phoenix, 2014). Single Family Homes A few years later, the market changed and people became more interested in single family homes than condos. Once again, Go... to the center of the card.... Supply and demand are not a constant, but an ever-changing pattern. As supply and demand curves changed and shifted, Goodlife adjusted prices and quantities to accommodate. This scenario easily adapts to many different aspects of supply and demand. The prices of products and services purchased every day are constantly changing, and supply and demand determine those prices. ReferencesMcGaughey, C. (2004, July 12). Price elasticity: from tires to toothpicks. Retrieved from http://www.econedlink.org/lessons/index.php?lid=551&type=educatorSaylor. (2014). Principles of microeconomics. Retrieved from http://www.saylor.org/site/textbooks/Principles%20of%20Microeconomics.pdfUniversity of Phoenix. (2014). Application of the simulation of supply and demand concepts. Retrieved from https://ecampus.phoenix.edu/secure/aapd/vendors/tata/UBAMsims/economics1/economics1_supply_demand_simulation.html