Complex Systems Assignment #3 MGMT220 - Jeff Sun 42869129

This is a model that depicts the interactions between buyers and sellers in regards to the position of price to the median price. This model works on the premise that when house prices drop below median price, buyers will increase and sellers will decrease, and vise versa.  When the values for Price, Buyers and Sellers are set to 50, the system will be in Equilibrium. Delays have not been added in order to show how components instantly respond to changing parameters. A more in-depth description is provided in the story. 

This is a model that depicts the interactions between buyers and sellers in regards to the position of price to the median price. 

This model works on the premise that when house prices drop below median price, buyers will increase and sellers will decrease, and vise versa.  

When the values for Price, Buyers and Sellers are set to 50, the system will be in Equilibrium. 

Delays have not been added in order to show how components instantly respond to changing parameters. 

A more in-depth description is provided in the story. 
Buyers and Sellers are the main players in the Real estate Market
Buyers, Sellers, and Price and all dependent on one another. 

As one of these factors are changed, the other two will shift accordingly to basic supply & demand principles 
How This System Works

Buyers and Sellers will be affected by Price relative to the median price of households. 

Buyers will be more inclined to purchase property when prices are lower than Median Price.

Sellers will be more inclined to sell property when prices are higher than Median Price. 

The median price is set to 50.
How This System Works

Buyers will keep increasing until prices rise above median price. 

Sellers will keep decreasing until prices rise above median price. 

Buyers will keep decreasing until prices drop below median price. 

Sellers will keep increasing until prices drop below median price. 

Buyer and Seller curves will instantly change direction as soon as price crosses the median price. 
How This System Works

Interest Rates acts as an additional means to encourage buying and selling of property. 

As Interest Rates decrease, buyers are more willing to take out loans. Therefore, the number buyers will increase.

As Interest Rates increase, sellers have greater loan repayments and will be more inclined to sell their property. Therefore, the numbers of sellers will increase.
How This System Works

"Total Buyers" and "Total Sellers" acts as a buffer to the system

Both are set to 80.

Once the buyers hit the "total buyers" limit, price will start to increase to counteract the increase in buyers. 

Once the sellers hit the "total sellers" limit, price will start to decrease to counteract the increase in sellers

View the model in Insight Maker