DEMAND AND SUPPLY

DEMAND AND SUPPLY

Core material:
• The law of demand
• Law of supply
• Factors affecting demand and supply

A. DEMAND (DEMAND)

1.Defininition DEMAND
As a student, you must have a wide range of needs such as writing books, reading books, pens, rulers, erasers, run, calculator, and so forth. Goods can be obtained by buying in market or on the market in the new academic year, students from elementary, junior high, high school, students would have even bought a notebook, or reading books, it is not
rarely if at the beginning of the year there is an increase in the price of books is greatly enhanced compared to the normal price, the price of books is usually Rp 2000, - to Rp 3000, -. Do you think the price increase like that is the amount of notebooks that will be purchased will be increased or decreased? Of course, it was reduced but not absolutely true because at a certain time even if prices go up people still buy these goods are like the example at the time of ticket price Lebaran, buses and ships increased rapidly but the people still buy these tickets.
Judging from the above cases we may conclude that there was a very close relationship between the amount purchased by consumers with a good price. The relationship between the two is called a request. Demand is the number of goods and services to be purchased by the buyer at the price level prevailing at a particular time and place.
Demand here is classified into:
a. Demand seen from consumer purchasing power is 3, namely:
? effective demand
consumer demand for goods and services coupled with purchasing power.
? Request Absolute
Demand is not supported by purchasing power, but only by the imagination. Example of a high school kid who wants to buy a laptop for $ 7,500,000 but he did not have the money to buy it.

? Potential Demand
Requests that will be realized with the amount of money owned. For example a mother who only has money 15,000. he wanted to buy clothes for her 6-year-old mother was so looking for clothes that fit with the money he has.
b. Demand in terms of income
? Consumer demand are all members of the public demand for goods and services to meet the needs life. Examples are buying food.
? Employers demand is the demand for factors of production to create goods or services. An example of a company to buy bread flour for making bread.
? Government demand is the demand by government for government expenditure. An example is ... ... ... ... ... ... ... ... ....
? Overseas demand is demand for goods and services coming from abroad are examples of export goods.
c. Demand seen from the number supplier.
? Individual demand is the demand coming from someone to make ends meet
Individual demand is determined by the following things:
? Price
Price is the main factor that affects a person in buying a product that produk.jika price increases, consumer more it will try to reduce the purchase of the product.
? Revenue
If income increases the demand usually increases, but if someone has a declining income or even removed from the job and has no income then we will reduce our demand.
? If other related items.
If other related items has decreased then the people will choose the goods than the goods will be purchased. For example, the price has decreased then people will choose to buy rather than buying the usual coffee drink.

? Taste
If a student likes fried bulb, then he will buy the bulb portion of fries in a lot instead of buying sweets.
? Expectations
Expectations were very influential in one's intention to purchase any goods or services as an example is if you estimate that the price of a shirt will have a massive discount at the end of the year so you do not want to buy clothes now.
d. Market demand is the demand that is owned by the public in the same time

2. THE LAW OF DEMAND
In the law of demand explains the nature of the relationship between the demand for an item with its price level. The law of demand states that the lower the price of goods so much more request. Conversely, the higher the price of goods less demand for goods that apply. Law other circumstances or cateris paribus unchanged.
Close relationship between price and quantity demanded of goods delivery request legal sense, which reads: "the quantity of goods demanded is always inversely proportional to the price".
The law of demand applies when other factors besides price are the cateris paribus (remain unchanged). As for other factors that make up the ceteris paribus condition is primarily:
income levels of consumers
Number of consumer market
Consumers' tastes or preferences
Prices other items related
Usability goods
Purchasing motives are not based on prestige / self-esteem.
So the request of law enforcement is not absolute as in the physical sciences but only a tendency of course is a trend that was about to go on but the truth has not been established.

3. Establishment Demand Goods In Tables And Graphs
A list showing the relationship between the number of requests with different levels of prices at a certain place and time called demand schedule or table requests. While a graph that connects between the number of requests with different levels of premium price to the lowest price is called the demand curve

Table Request

Price per fruit
(P) Total Request Goods
(Qd) Total expenditures (Total consumer) (PxQd)
A Rp 80.000, - 2000 Rp.160.000.000, --
B Rp 60.000, - 2200 Rp 132,000,000
C Rp. 40.000, - 2600 Rp 104,000,000
D Rp. 20.000, - 3000 Rp 60,000,000

based on the image curve can be concluded:
- The demand curve means that a negative cycle if the price of a good rises, the quantity demanded will decrease and vice versa.
- The shape of the demand curve (ie a negative cycle mengusur right to left top to bottom)

4. Change Request

Request a person or a society to something of goods is determined by many factors. Among these factors are important in the change request is:
a. Price itself
If the item price increases more than half the original price the consumer will make a rethinking to consume these goods.
b. Related prices
Regard a particular item with other items in a substitution bias or komplomen. Example: If the pilot can be replaced with standler, then when the pilot experienced an increase in the price the consumer would prefer to have bolpoint standler fixed price and cheaper.
c. Taste changes
Greatly affect the changing tastes of consumers desire to purchase any item. In 1960, very rare 1n people even say there is no wearing Japanese-made cars. But in the 1970s the mood had changed a lot of people who use Japanese-made cars because their tastes have changed
d. Revenue
Income decreased Semangkin someone so semangkin little amount of demand. For example when a consumer's income rises and the prices of consumer goods will continue to buy goods with the stock number semangkin lot of venom.
e. Population growth in population
Number of population growth does not necessarily lead to increase demand. But population growth is usually followed by growth in employment opportunities. Thus the more people who receive this income and increase purchasing power in society. Increase the purchasing power is increasing demand.

After the above memebaca, analyze the following things:
1. differences in individual demand and market demand
2. Because the demand curve moves from left to bottom kekanan
3. For example currently you are an employee with a monthly salary 1,500,000. At the end of this month you are promoted to Staffing Manager salary Rp. 7,500,000.00 per month. Whether
This income changes alter your request? Explain by using the curve?
frodo baggin
19-06-2009, 06:02 PM
B. SUPPLY (SUPPLY)

1. Understanding Bid

Demand is not yet sufficient condition to achieve in a market transaction. Demand will happen if the seller can provide the goods needed by consumers. At first, when the merchandise to the seller must sell really clever in offering his wares to buyers. Here is clear that the offer came from the seller. Offer a number of goods offered for sale at various price levels in a market at a particular time.
In bidding, bidding can be classified into two, namely
? Offer Individual
Offer Individuals are offering owned by a lord
? Offer large / Collective
Offer available in the market

2. THE LAW OF SUPPLY
Law of supply is a statement explaining the nature of the relationship between price and the quantity of goods offered by the seller. This law is expressed in how the desire of the seller to offer such goods if the goods that have a low price and if he also has a high price. Law of supply basically says that the higher the price of something good, many semangkin amount of goods will be ditawarakan by the sellers. Conversely the lower the price of goods will be little semangkin amount the item will be offered by the seller.
Law of supply apply if other factors besides price are cateris paribus. The other factors that shape cateris paribus is:
technology used is fixed
The seller does not need the cash price
The seller will not worry if one day the prices will come down
The number of traders and producers remain

3. CHANGES IN SUPPLY
Seller wants to offer goods at various price levels determined by various factors namely:
a. Production Technology
Technology used in production of originally intended to occur in the production efficiency. Semangkin means of modern technology that is used both quality and quantity of production increased by semangkin production costs semangkin suppressed.
b. Hopes the foreseeable dating
When the producers have thought that the goods produced from endangered the action goods producers are stockpiling it until at some point will get a big profit. For example, a seller of oil began to feel that oil is scarce so many sellers are hoarding oil and sell it at a great price because it needs an urgent community. But such acts are prohibited because of the same as that stockpiling could eventually harm the surrounding community.
c. Prices of production factors
Determine the production cost of a basic price of goods, thus the production cost change if the producers would reduce the amount of supply. But if the production costs low, there semangkin lots of goods and services to be offered by the seller.

4. formation Bid items in the table and graph
A list showing the relationship between the number of bids with different price levels at a particular place and time is called the supply schedule or table a bid. while a graph that connects between the amount bid by the price level of the lowest prices to the highest is called the supply curve.
Table Offer
Price per fruit
(P) Total Supply of Goods
(Qd)
A Rp.5000 600
B Rp4.500, - 525
C Rp4.000, - 450
D Rp 3000, - 300

Buzz (material for discussion ... ... ... ....)
By forming a group with a certain amount of the following discussion !!!!!!
If you're currently a major director in a company that produces sports shoes with Grace brand, whether the following things can affect the amount of production (supply) you?
1. The increase in the price of raw materials such as leather, glue, rubber, and yarn
2. The increase in wages because trade unions demanding salary increases 10%
3. find the latest shoe-making technology that could produce 1000 pairs of shoes a week, while the old technology can only menghaslkan 200 pairs a week.
frodo baggin
19-06-2009, 06:03 PM
BALANCE PRICE

Core material:
• Process of Price Formation
Balance
• The balance of the price changes
• Role of government

A. PRICE BALANCE (Eqilibrium Price)

In order for the transaction between buyers and sellers and, the demand and supply must reach the intersection. If the buyer offers a price too low, it will not happen if the seller also transaksi.demikian survive at high prices, the transaction will not occur, therefore, required an agreement between seller and buyer so that the purchase and sale transactions occur.
1. DEFINITIONS OF BALANCE PRICE
Problems associated with the price of economic goods, because of the economic goods and useful steps and sacrifices necessary to get money with the help of the price. Price is the embodiment of an exchange of goods / services stated money. Therefore, the price is the objective exchange value of goods / services and the exchange rate itself is the objective market price or equilibrium price. Market prices are not made automatically but through a process of market mechanisms attraction between the power demand and buyers with sellers with the power supply.
Based on the understanding that the equilibrium price can mean a price level that has been agreed by the buyers and sellers in the market. Price balances shown by the intersection of the demand curve which is the desire of the buyers and the supply curve is the will of the seller.
2. variety and Buyer Seller
Contacts in the market place between buyers and buyers who have the subjective price of each is different. subjective price is the price desired estimation by the buyer and the seller wants. Prices are influenced by subjective buyer purchasing power and intensity while the price of the subjective needs of the vendors affected by the cost of production, the nature of traded goods and the power of capital or financial condition.
Based on the level of subjective prices of buyers and sellers that it will distinguish the various buyers is as follows:
a. Purchasers Supermarginal
Ie buyers who have the purchasing power of commodity market prices and they have more willingness to pay the price of goods in the market or they receive a premium customer (consumer ren's). so that oaring high purchasing power.

b. Marginal buyers
Ie buyers who have purchasing power in accordance with market prices. The first seller to buyer in this group is still relatively effective
c. Purchasers Submarginal
Ie buyers who have purchasing power is lower than the market price so the buyer is an absolute one or absoulut.
While sellers are also divided into three is as follows:
a. Seller Supermarginal
Ie cost of production or prices lower than market prices. These sellers will get a premium producers because they are more efficient than others
b. Seller Marginal
Namely the cost or price of production equals the market price. The first seller is a seller out of business like this because these producers can not come to sell the market.

c. Seller Submarginal
Namely the cost or production cost which has a price below the price pasar.Penjual / producers like this can not participate for the selling market.

3. Market price formation process
As described above the market price is formed through a process of bargaining between the seller and buyer. In detail, the price formation process can you look at the following

? seller initially offers goods or services with high prices, while buyers to bid lower prices thus when each would not be unbearable buying and selling happens
? Therefore, the buyer incentive to raise hargatawarannya order to obtain goods or services desired. While the seller will lower the price for goods and services offered can be sold.
? Bargaining between buyers and sellers continue until it obtained the agreed price level on both sides of the price of goods or services demanded as the price of goods or services offered.
To clarify your understanding then consider the following table:
Table Request and Bid rice pulen X
The price of rice per Kg Request Offer Description
1 Rp5.000, - 0 600 Pros Offer
2 Rp4.500, - 75 525
3 Rp4.000, - 150 450
4 Rp 3000, - 300 300 Price Balance
5 Rp 2000, - 450 150
6 Rp 1500, - 525 75
7 Rp 1000, - 600 0 Pros Offer

? Pros Offer
Consider point D and point s1 Throughout s1 and d is excess supply. Excess The first occurs when the quantity demanded 0, while the quantity supplied 600.kelebihan second occurs when the quantity demanded and the quantity of goods 75 offered 525. Excess supply has forced prices down toward equilibrium.
? Excess Demand
Consider the point S and point S Throughout d1 and d1 is the first surplus occurs when quantity demanded and the number 600 has to offer 0. The second advantage occurs when the quantity demanded is 525 and the number 75 has to offer. This supply shortage forced the price up towards equilibrium.
4. PRICE CHANGES IN THE BALANCE
Market equilibrium condition is a state that depends on the conditions of supply and demand prevailing at a particular moment. The market can only be said in a state of balance during conditions of demand conditions or whether kondissi supply or both change, then the market will cause prices to shift from the existing state of equilibrium to the new circumstances.
To understand this section, we will divide the balance of the price changes in three parts, namely as follows:
Equilibrium price changes caused by Demand Curve Shifts
In the following exhibit, the demand curve shifts to DD D1D1, while the supply is stable. Thus was formed the new equilibrium price at E1.

In the above circumstances, cateris peribus no longer valid because of a change in the factors affecting demand. New equilibrium price is established at the point of E1 are the result of a new request with a long quote. This is usually just a result of people's income aniknya.
Equilibrium price changes caused by shifts Curve Bid

In the picture above, the supply curve shifts down kekanan. SS starting position of equilibrium price E shifted to balance the price of S1S1 with E1. This shift could be the causes of membajirinyapenawaran goods in the market while demand at all ti.dak changed. These conditions forced the price falls from P to P1 this incident could have been caused by the presence of new players entering the market or technological advances that produced goods more.
Equilibrium price changes caused by shifts Curve Supply and demand
If supply and demand increases, one thing is sure there is an increase in sales. From the figure above, we can see jumlajh sales increased from Q to Q1. Created a new equilibrium price in E1 is higher than the previous equilibrium price (E.)
In this case, created a new price is greater than the original equilibrium price. This is due to new eprmintaan old price exceeds the supply at that price. This case is much smaller increase in supply resulting from increased demand equilibrium price.


Original condition, the intersection curve with SS DD generate initial equilibrium price at point E. Due to increasing demand and supply, the equilibrium price becomes E1sebagai intersection of the new request, represented by the D1D1 and the new bid represented by S1S1. but here the balance of the price decline. This is as a result of increased treatment is greater than demand.
5. BY GOVERNMENT PRICING
In addition to market-determined through bargaining in the market. Price is also determined by government policy. The price set by the government are:
Minimun Price (lowest)
Is the minimum price limit imposed terndah price of a good.
Maximum Price (highest)
The maximum price is the highest price limit applies to an item.
Price Benchmarks Local (HPS)
Local benchmark price is the price imposed on an item for a particular area.

forms of market goods and input markets

Core material:
• Types and characteristics of goods markets and input markets
• Government intervention in price formation