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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1175 |
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With this increase in population a change in the demand for apartments increased. Because of this increase in demand, Goodlife's response was to increase the monthly rental rate. To determine what the new rate would be, Goodlife had to determine what the equilibrium point would be for what they were willing to supply or rent out and the amount that each unit would rent for...
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Finding the equilibrium point will ensure that there is a balance in the demand and supply for the apartments. The importance of finding the equilibrium point is because if the rental rate is above the equilibrium point then the supply would be more than the demand and if the rental rate falls below the equilibrium point then the demand would be more than the supply...
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