Ajeng Cempaka Lestari

Accounting 2019
2019210028

Supply and Demand Models

1. Diketahui :
● Product : Gucci
● Formula :
○ Qs Gucci : 30 + 10p
○ Qd Gucci : 120 - 20p
2. Point test :

Price S0 D0 S1 D1
(in hundred) (30 + 10p) (120 - 20p) (30 + 10p) -15 (120 - 20p) + 15

$ 2.00 50 80 35 95

$ 2.50 55 70 40 85

$ 3.00 60 60 45 75

$ 3.50 65 50 50 65

$ 4.00 70 40 55 55

$ 4.50 75 30 60 45

$ 5.00 80 20 65 35

When the price and quantity at equilibrium

W

When the cost of input of Gucci increase

When the income of people increase

3. Graphic when the price and quantity at the equilibrium (Original Graph)
 From the graph above, our demand and supply model illustrate the market for Gucci
in the year before the income of people and the cost of input increase began. The
demand curve D0 and the supply curve S0 show that the original equilibrium price was
$3.00 and the original equilibrium quantity was 60.

4. Graphic when the income of people increase (Demand shift graph)

From the graph above, our demand and supply model illustrate the market for Gucci
in the year after the income of people increase began. As we know that if the people's
income increases, the quantity of demand will also increase. This increase will shift
the demand graph to the right —like the graph above. The demand curve D 1 and the
supply curve S1 show that the equilibrium price was $3.50 and the equilibrium
quantity was 65. It’s ceteris paribus, demand curve shift from D0 to D1,
 corresponding to a higher quantity for each purchase price. The customer will then
change their purchase from Q0 to Q1 for the Gucci, increasing their purchase of the
product.

5. Graphic when the cost of input of Gucci increases (Supply shift graph)

From the graph above, our demand and supply model illustrate the market for Gucci
in the year when the cost of input of Gucci increases. As we know, if the cost of input
increases, it will decrease the supply from Gucci. This condition will shift the supply
graph to the left —like the graph above. The demand curve D1 and the supply curve
S1 show that the equilibrium price was $3.50 and the equilibrium quantity was 50.