Demand Models

These models and simulations have been tagged “Demand”.

Related tagsSupplyHousingEconomics

The housing market is heavily dependent on two main factors; supply and demand. Both play a major role in determining an equilibrium price for both sellers and buyers in the real estate market.     Residents, or the general population of individuals, place significant reliance on financial instituti
The housing market is heavily dependent on two main factors; supply and demand. Both play a major role in determining an equilibrium price for both sellers and buyers in the real estate market. 

Residents, or the general population of individuals, place significant reliance on financial institutions to provide sources of capital i.e mortgages, to fund their purchases of homes. The rate of interest charged by these organisations in turn gives buyers (consumers) purchasing power, creating demand. 

Supply is made up of the number of houses in the market, and consequently, of these, the number of houses which are up for sale. As the prices of houses for sale increases, the demand for purchase of these properties decreases. Conversely, the lower price, the higher the demand. Once the market reaches an equilibrium point, to which buyers and sellers form an agreement, houses are sold accordingly. An underlying factor to consider is the cost of construction, which impacts producers, or suppliers in this instance, and thus the number of homes for sale, and the expected profit sellers hope to achieve. 

The simulated graph highlights the common scenario within the housing market, to which we see that as price increases, the total number for houses for sale decreases, generating an opposite slope to the price. As the price for houses increases, the demand for the houses decreases and vice versa. The equilibrium is evident at time 14 whereby the price of houses and the number of houses for sale overlaps which in turn creates a market to which both buyers and sellers are happy.
THE BROKEN LINK BETWEEN SUPPLY AND DEMAND CREATES TURBULENT CHAOTIC DESTRUCTION  The existing global capitalistic growth paradigm is totally flawed  Growth in supply and productivity is a summation of variables as is demand ... when the link between them is broken by catastrophic failure in a compon
THE BROKEN LINK BETWEEN SUPPLY AND DEMAND CREATES TURBULENT CHAOTIC DESTRUCTION

The existing global capitalistic growth paradigm is totally flawed

Growth in supply and productivity is a summation of variables as is demand ... when the link between them is broken by catastrophic failure in a component the creation of unpredictable chaotic turbulence puts the controls ito a situation that will never return the system to its initial conditions as it is STIC system (Lorenz)

The chaotic turbulence is the result of the concept of infinite bigness this has been the destructive influence on all empires and now shown up by Feigenbaum numbers and Dunbar numbers for neural netwoirks

See Guy Lakeman Bubble Theory for more details on keeping systems within finite working containers (villages communities)

 Documentation       The Insight shown demonstrates how demand and supply in a real estate market can affect pricing.      Demand, Supply and Price have been represented by stocks. Each has an inflow where it has an increase in stock, and a corresponding outflow where stock is decreased.      Linkin
Documentation

The Insight shown demonstrates how demand and supply in a real estate market can affect pricing. 

Demand, Supply and Price have been represented by stocks. Each has an inflow where it has an increase in stock, and a corresponding outflow where stock is decreased. 

Linking each stock and flow is a variable that changes that which it is linked to. These have been labelled appropriately. Each variable takes a decimal value and multiplies it with that it is linked to, such as the rate of demand affecting the price set as 0.001*Demand. This is to generate the loops required to show the rise and fall in price, demand and supply.

Adjustments can be made to the price, supply and demand stocks to simulate different scenarios. Price can be between 400 (400,000) and 1000 (1,000,000) in accordance to average housing prices. Demand and supply can be between 0 (0%) and 100 (100%), although having these set as realistic figures will demonstrate the simulation best. 

Each simulation can be focused on how either demand and price interact over time or supply and price. These are shown in different tabs. 

When the simulation is carried out, the way in which demand and supply rates affect pricing can be seen. Demand and supply are shown with price following shortly after with a slight delay, since changes in market behavior does not immediately affect prices of housing. 

It should also be noted that the lines that represent each stock do not directly reflect the prices of housing in reality. Prices do not fluctuate so rapidly from 400 to near 0 like they do on the graph, however these are just representations of the interactions between each stock in a marketplace.
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
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. 
Este modelo busca simular la demanda y oferta de materiales de construcción en la ciudad de Calí (Colombia), En cuanto a la demanda se presenta como principales iniciadores entre otros:  La salud económica (PIB regional, desempleo, cartera hipotecaria)  Estado de la construcción (Licenciamientos, in
Este modelo busca simular la demanda y oferta de materiales de construcción en la ciudad de Calí (Colombia), En cuanto a la demanda se presenta como principales iniciadores entre otros: 
La salud económica (PIB regional, desempleo, cartera hipotecaria)
Estado de la construcción (Licenciamientos, iniciaciones, obras civiles, despachos de cemento)
En cuanto a la oferta se presenta como principales iniciadores entre otros:
Capacidad de proveedores: (Disponibilidad de fuentes, Calidad)
Aspectos legales (Titulos mineros, socioambiental)
Transporte (Flete, estado de la red vial, precio de combustible, distancia de acarreo)

 Supply and Demand tend to oscillate back and forth though Price.  @ LinkedIn ,  Twitter ,  YouTube

Supply and Demand tend to oscillate back and forth though Price.

@LinkedInTwitterYouTube

See reference in diagram notes. WIP for Environment part of primary care regional model. GP centric calibration by JPS at  IM-14117  See also  IM-3126  for Regional Health Service Use Context
See reference in diagram notes. WIP for Environment part of primary care regional model. GP centric calibration by JPS at IM-14117 See also IM-3126 for Regional Health Service Use Context
See reference in diagram notes. WIP for Environment part of primary care regional model
See reference in diagram notes. WIP for Environment part of primary care regional model
  Real Estate
Marketplace Modeling diagram  

 This model is to explain the relationships among different players in a real estate marketplace,
including the simple economic concept, for example, demand, supply, price, etc.
The model is basically two years monthly based. It starts with a relationshi

Real Estate Marketplace Modeling diagram

This model is to explain the relationships among different players in a real estate marketplace, including the simple economic concept, for example, demand, supply, price, etc. The model is basically two years monthly based. It starts with a relationship between demand, supply and price. These three main determines are interdependent and affect other others. Moreover, there are few variables in the model, the price elasticity of demand and supply are included in order to successfully predict the flow of price since all determines are dynamic numbers but not a fixed number. Simultaneously, buying and selling ratio are in the model to demonstrate the proportion of residents and owners to buy and sell. When people are highly interested to buy a new home, their motivation are based on the demand and supply in the market. If demand goes up, supply goes down, price will go up. If the price goes down, demand will soon goes up because the price is low so people can become home buyers.

  • ·        When the supply in the market is high, no home owners would like to sell their homes because the price is low and they are not able to maximize their profit.  Once the supply goes up and demand goes up, homes will add stock into market so more homes will be for sale.

  • ·        If people become home buyers and new homeowners, the flow will go back to people because they become owners and their homes can be sale afterwards. Hence if a home is sold then it can come back to homes. Sales are done deal when a home for sale becomes a sold home and a home buyer becomes a new home owner.

  • ·        Finally, price is determined by the buying ratio and selling ratio. Buying and selling ratio are basically calculated from homes for sales, total homes, total population and home buyers. Though the peak and downturn of buying ratio and selling ratio are significant factors to decide the value of a home.

  • ·        Sliders are added to let readers to change the parameters to have different stimulation results.
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 Documentation       The Insight shown demonstrates how demand and supply in a real estate market can affect pricing.      Demand, Supply and Price have been represented by stocks. Each has an inflow where it has an increase in stock, and a corresponding outflow where stock is decreased.      Linkin
Documentation

The Insight shown demonstrates how demand and supply in a real estate market can affect pricing. 

Demand, Supply and Price have been represented by stocks. Each has an inflow where it has an increase in stock, and a corresponding outflow where stock is decreased. 

Linking each stock and flow is a variable that changes that which it is linked to. These have been labelled appropriately. Each variable takes a decimal value and multiplies it with that it is linked to, such as the rate of demand affecting the price set as 0.001*Demand. This is to generate the loops required to show the rise and fall in price, demand and supply.

Adjustments can be made to the price, supply and demand stocks to simulate different scenarios. Price can be between 400 (400,000) and 1000 (1,000,000) in accordance to average housing prices. Demand and supply can be between 0 (0%) and 100 (100%), although having these set as realistic figures will demonstrate the simulation best. 

Each simulation can be focused on how either demand and price interact over time or supply and price. These are shown in different tabs. 

When the simulation is carried out, the way in which demand and supply rates affect pricing can be seen. Demand and supply are shown with price following shortly after with a slight delay, since changes in market behavior does not immediately affect prices of housing. 

It should also be noted that the lines that represent each stock do not directly reflect the prices of housing in reality. Prices do not fluctuate so rapidly from 400 to near 0 like they do on the graph, however these are just representations of the interactions between each stock in a marketplace.
 Clone of SystemsWiki version corrected but not working     Supply and Demand tend to oscillate back and forth though Price.

Clone of SystemsWiki version corrected but not working


Supply and Demand tend to oscillate back and forth though Price.

Clone of Clone 4of IM 27348, of JPS IM-27150 of original JPS  IM-14117  See reference in diagram notes. WIP for Environment part of primary care regional model
Clone of Clone 4of IM 27348, of JPS IM-27150 of original JPS IM-14117 See reference in diagram notes. WIP for Environment part of primary care regional model
 Supply and Demand tend to oscillate back and forth though wastage is a constant.

Supply and Demand tend to oscillate back and forth though wastage is a constant.

 What happens when supply side incentives pull the demand curve further than it can go

What happens when supply side incentives pull the demand curve further than it can go

Shown here is a diagram of a Real Estate Market where in which variables like price, supply and demand are found to be present and play a role in the sides of the buyers and the sellers.     When prices go up the supply of sellers increase while the demand of buyers decrease. When prices go down the
Shown here is a diagram of a Real Estate Market where in which variables like price, supply and demand are found to be present and play a role in the sides of the buyers and the sellers. 

When prices go up the supply of sellers increase while the demand of buyers decrease. When prices go down the supply of buyers increase in the real estate market while the demand of sellers decreases.

It is the simple economic rule found in plain sight in the real estate market.

1 - Price elasticity of Supply with the sellers is high due to their ability to adapt to sudden changes in prices in the market.

2 - Demand elasticity of price on the other hand was not proven to be as high in the calculations since there was no factual data as to how fast the buyers reacted to an increase in supply or a decrease in price. Although seen is the increase in demand when a the price is lowered.

3 - Increases in Median Price lead to a increased Supply from the Sellers.

4 - Decrease in Median Price lead to a increased demand from the Buyers.
Assignment#3: Complex Systems

 Real Estate Market Modeling diagram 

   

 This diagram implies the simple supply and
demand concept to show the relationship of different roles in the real estate
market and how they affect the price of houses, buyers and sellers.  

 The motivations are based on th
Assignment#3: Complex Systems

Real Estate Market Modeling diagram

 

This diagram implies the simple supply and demand concept to show the relationship of different roles in the real estate market and how they affect the price of houses, buyers and sellers.

The motivations are based on the concept, when the houses’ price goes down (demand goes down) there will be more people interested in buy a new house (supply goes up).

 

The simulation will show the range within 36 months as units. It demonstrates the comparison of price, houses buyers and Houses for sale.

 Supply and Demand tend to oscillate back and forth though Price.

Supply and Demand tend to oscillate back and forth though Price.