Posted: September 16th, 2017

Complete the Supply and Demand Simulation located on the student website

Supply and Demand
Description: Complete the Supply and Demand Simulation located on the student website. Clarification: In the initial part of the simulation you are told that GoodLife
Management is a monopolist. This is an error. Monopolists do not have supply curves and monopolistic markets should not be analyzed using the supply
and demand framework, which is applicable to perfectly competitive markets. Make the following changes regarding the simulation. For the first scenario,
GoodLife Management has control over the market price and acts as a monopolist. For all other scenarios, you are to assume that GoodLife Management
is one of a large number of suppliers, each supplying relatively identical apartments. That is, after the first scenario, assume that the market is perfectly
competitive, and that GoodLife Management is not a monopolist. Any reference to GoodLife can be considered to be a reference to the entire market of
suppliers, and the quantity supplied is the quantity supplied by all suppliers. Write a 700- to 1,050-word paper addressing the following: In the first
scenario, what rental rate did you choose? Why? Identif one shift of the supply curve and three shifts of the demand curve in the simulation. What caused
each of the shifts? For each shift, identify the direction of the change in supply or demand. For each of the shifts identified above, analyze how the
equilibrium price and quantity is affected. Discuss how the rental ceiling affects consumers and GoodLife Managementâs decisions. In a real world
scenario, how might apartment managers circumvent a ceiling on rental rates? How might you apply what you learned about supply and demand to your
workplace or your understanding of a real-world product with which you are familiar? Relating to the simulation, explain how the price elasticity of
demand affects consumersâ responses to price changes. Also, in the first scenario, how does the price elasticity of demand affect the price selected by a
monopolist? Format your paper consistent with APA guidelines.