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Economics for Business
Workshop #1
Introduction
Goodlife Management is a monopoly of Atlantis. Goodlife Management can alter the rental rate at their discretion to match the market. Goodlife Management utilizes the concepts of demand, supply, and equilibrium to determine how to manage the apartments while making the most money in the ever-changing market.
Demand
Demand is the amount of a good that consumers are willing and able to buy at a given price. (http://www.bized.ac.uk.stafsup/options/notes/econ207.htm) The factors that influence demand are: the price of the good, the income of consumers, the demand for alternative goods, which could be used (substitutes), the demand for goods used at the same time (complements); and whether people like the good (consumer taste). (http://www.bized.ac.uk.stafsup/options/notes/econ207.htm) Demand was a positive factor for Goodlife Management when the population increased. The demand for two-bedroom apartments increased and there was no affect in the supply of the apartments. Demand also was a negative influence for Goodlife Management. The demand was negative for Goodlife Management when the population preferred to purchase detached homes instead of rent an apartment. The negative demand meant there were less prospective tenants for the apartments, which caused Goodlife Management to lower its rental rate. As the rental rates decreases, the quantity of apartments also decreases.
Supply
Supply is the amount of a good producer is willing and able to sell at a given price. (http://www.bized.ac.uk.stafsup/options/notes/ec ...