Introduction Supply 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 rent for two-bedroom rental apartments and the number of available apartments. Supply and demand within the simulation was manipulated by rental rates, the economy, income and personal choices. All these characteristics influence the percentage of vacant and occupied apartments. Simulations At the start of the simulation GoodLife Management held a monopoly in Atlantis on two-bedroom apartments and therefore could lower the rent to increase quantity demand and increase revenue for the property management company. This move ultimately resulted in a low vacancy rate. Once revenue peaks, demand decreases. The solution is to decide at which level the rental rate has the highest possible returns with a low vacancy rate. The next section of the simulation introduced the concept of a supply curve to show the price needed to rent all the apartments offered. As rents increased, more apartments were provided. “The law of supply states: the quantity supplied increases as the price increases, the remainder remains constant; The quantity supplied decreases as the price decreases, other things being equal” (Colander, 2006, p. 97). A higher rental price is an incentive to provide more rentals, which would be a cost advantage for GoodLife Management, as it would cover all maintenance costs allowing all apartments to be rented out... at mid-paper... . ...there aren't many problems. When asked to make changes that would affect supply and demand, this student made the changes based on the factors provided. The four key points first introduced through the text assigned to the class by D. Colander were reinforced in the simulation balance, supply and demand, price ceiling and supply and demand shift. This student actually ran the simulation more than once to fully understand the concept of supply and demand. References Colander, David C. (ed.). (2006). Economics (6th ed.). . [University of Phoenix Custom Edition Electronic Text]. 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.