Name : Muhammad Hoqqil Fatwa NIM : 19522214
CHAPTER 4
The Market Forces of Supply and Demand
RESUME:
DEMAND THEORY
To study demand theory (Demand) there are three approaches, namely:
1. Definition of Demand: in the form of definition.
2. Demand Schedule: in tabular form.
3. Demand Curve: in graphical form.
A. Definition of Demand
Demand is the buyer's preference to buy a certain number of goods at a certain price
level.
The condition of consumer demand is influenced by two factors, namely:
The desire to consume goods and services (willingness to consume)
The ability to realize the desire to consume (ability to consume)
There are two definitions of demand according to the subject:
a. Individual Demand
b. Collective Demand
B. Demand Schedule
Demand Schedule is a list (table) that shows the relationship between the various
quantities of goods x requested at various price levels x applicable.
C. Demand Curve
From the Demand Schedule discussed earlier, we can draw a curve called the Demand
curve.
Demand Curve is a tool used in the form of a graph that illustrates the position of the
point that connects the various quantities of goods requested at various price levels.
The shape of the demand curve is negative slope / downward slope or downward from
top left to bottom right. this can be proven by the ratio of price increases and the quantity of
goods demanded.
D. Factors Affecting (Determinants) of Demand
The factors that influence demand include:
1. Price of the item itself (Px)
2. Prices of other goods that are closely related to the goods (prices of replacement or
complementary goods) (Py)
3. Community income (M)
4. Distribution of community income (Mb)
5. Community taste (T)
6. Total population (Po)
ft. Forecast in the future (expectation) (E)
SUPPLY THEORY
To study supply theory three approaches are used:
1. Meaning of Supply: in the form of definition
2. Supply Schedule: in tabular form
3. Supply Curve: in graphical form
A. Definition of Supply
Supply is the seller's willingness regarding the amount of goods to be sold at a certain
price level. Who learn about the relationship of the amount of an item offered to the price
level.
B. Supply Schedule
The Bid function can be used in the following Supply Schedule table form:
Supply Schedule is a list that shows the relationship between various quantities of goods
offered at various price levels.
C. Supply Curve
From the previous Supply Schedule or Supply Function it can be described in the form of
a curve called the supply curve.
Supply Curve is a place of the possible points that connect between the various
quantities of an item offered at various price levels.
The supply curve is a positive slope or rises from the lower left to the upper right.
This can be proven from the ratio of price increase with the addition of the number of
goods offered is positive
D. Factors Affecting the Offer
The factors that affect the Bid include:
1. Price o