A parametric study of the properties of electrorheological fluids is conducted using molecular dynamics (MD) simulations. The MD model is based on the solution of the Langevin equation for a number of suspended particles. The equations of motion include inertial effects, polarization forces, Stokes' drag, short range repulsion, and Brownian forces. Different polarization forces are considered to include the effect of enhancements at short range due to multipole moments induced by the suspended particles and other effects. The model is used to investigate the structural changes induced by external electric fields and by shear strains imposed on the system. The response times are studied as a function of two characteristic parameters describing the physical status of the system (temperature and external electric field). Finally, the stress-strain characteristics are studied and the yield stress is calculated as a function of the external electric field. The simulated response is compared with experimental findings.