Eco 365 Week 2 Individual Assignment Workbook

2Markets and the Economics of the Public SectorGood afternoon ladies and gentlemen and thank you for attending the governor's conference on economic development. Today we will be discussing some topics that will talk about our economy, and its development and how it has changed over time. During this conference, we will discuss variables that may have an impact on the equilibrium of supply and demand and how that can be achieved. After we discuss the balance of supply and demand, we will move on to the efficiency of the market; then we will consider the cost of Taxation and benefits of international trade. We will also review consequences or side effects that may prohibit the market equilibrium. And the government policies that are used to Aid the end efficiencies in markets that are caused by external influences. For our last topic we will teach the difference between the effectiveness of a tax system and the equality of a tax system, and then we will conclude with a review for you. Thank you so much for your time, and I hope you enjoy our presentation.Equilibrium of Supply and Demand"Supply and demand are the main categories of economics, and successful functioning of the economy in general, as well as that of individual companies, depends on understanding their nature." (Andreishina, 2015) Demand is the quantity of a product or service that is desired bythe customers and at a certain price. Supply is the actual amount of the product or service that can be offered to the market. "The relationship between demand and supply underlie the forces behind the allocation of resources. In market economy theories, demand and supply theory will allocate resources in the most efficient way possible." (Heakal, 2016) Economic equilibrium is the correlation between the two. To achieve it, you need to either limit the requirements or increase the volumes. "Equilibrium at the micro level implies such a state of subjects that ensures the equality of supply and demand of goods, services and resources. At

Supply and Demand Simulation 2 simulations presents shifts in the supply and demand curve, the rationale for the shift is given. Each shift is analyze showing the effects of the equilibrium price, quantity, and decision making for the company presented. The concepts learned in the simulation will further allow me to understand how each can apply to my current workplace. An explanation of the price elasticity effects of demand effects the pricing strategy for consumers and company's is explained to gain an understanding of how important a strong strategy is relevant to success. In the simulation a neighborhood called Atlantis is used. Atlantis is a nice neighborhood with many amenities that consumers demand (University of Phoenix, 2012). A two bedroom apartment rental in Atlantis is used in the simulation to present the effects of supply and demand. The simulation presents several scenarios that have been acquired by the management company of the two bedroom apartment rentals. The scenarios will show how price can effect supply and demand while being competitive within the market. In the simulation microeconomics concepts are used. Microeconomics is the study of behavior on a smaller scale such as households and businesses (Colander, 2010). This is the opposite of macroeconomics. In the simulation the first scenario represent microeconomics. This is because the property management company has to make a decision on the rental rate required for the two bedroom available rentals to decrease vacancy and to maximize revenue (University of Phoenix, 2012). This is related to the principle of microeconomics because its focus is on supply and demand. To decrease supply of vacancies the company has to increase demand by lowering rental rates. Macroeconomics is presented in the simulation in the second scenario. Macroeconomics is the study of

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