ECO365 Week 2 Individual Assignment

Individual

Supply and Demand Simulation

Complete the Supply and Demand Simulation located on the student website.

Write 700 – 1,050-wordpaper of no more than summarizing the content. Address the following:

·  Identify two microeconomics and two macroeconomics principles or concepts from the simulation. Explain why you have categorized these principles or concepts as macroeconomic or microeconomic.

·  Identify at least one shift of the supply curve and one shift of the demand curve in the simulation. What causes the shifts?

·  For each shift, analyze how it would affect the equilibrium price, quantity, and decision making.

·  How may you apply what you learned about supply and demand from the simulation to your workplace or your understanding of a real-world product with which you are familiar?

·  How do the concepts of microeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?

·  How do the concepts of macroeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity?

·  Relating to the simulation, explain how the price elasticity of demand affects a consumer’s purchasing and the firm’s pricing strategy.