Supply and Demand Simulation

As Property Manager for GoodLife Management in Atlantis function for confineing refreshing term of a contract roams and quantity available apartments involves several factors. personalize preferences, economy, income, and boutal rate all affect the ratio of vacant and occupied apartments. Decisions regarding supply, quest, and cost require careful evaluation. Regular postdate of supply and demand is necessary to remain competitive in the ever-changing economy we live in. As the community evolves, GoodLife must(prenominal) make accommodations to remain viable in the real people industry. When GoodLife came to Atlantis, they dominated the market since they were the only confederation offering rental apartments. This meant GoodLife could set the rental rate to any terms they wished. At the same time, the company realized that higher(prenominal) prices would keep any(prenominal)what renters away creating slight demand. Surveys proved that rather than paying higher rent, people would blend in to nearby towns for lower rental rates. In order to maintain a low percentage of unoccupied apartments GoodLife set the rent to a reasonable amount as opposed to a higher rental charges. As nation change magnitude, demand for apartments increased as well. GoodLife was able increase rental rate without sacrificing the egress of occupied apartments. With the state boost, incomes raised as well. This light-emitting diode renters to pop off buyers, thus decreasing the demand for rental units.

As a result, GoodLife needed to lower rent to attract more renters. In a further a ttempt to remain competitive, GoodLife renov! ated some apartments into condominiums. This allowed the company to reduce the supply of apartments that were in low demand. Increased population was an asset in the beginning. As population grew, it became a drawback as traffic, congestion, and rental rates escalated. The government set a price ceiling on two bedroom apartment rentals in an effort to allow families to find affordable housing. The demand... If you want to out a full essay, order it on our website: OrderCustomPaper.com

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