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B Inggris Ekonomi
B Inggris Ekonomi
Kholilur Rohman
210432620488
DEMAND & sUPPLY
Market Equilibrium
The circular flow Diagram shows the
connections between firms and households in
input and output markets.
Circular Flow Diagram
Start!
Law of Supply
technology Resource
For example, there is a shop A that produces 1,000 clothes and sells them for IDR
150,000 per piece. However, during the sale it turned out that no one wanted to buy it.
The shop also lowered the price to IDR 100,000 per piece, and at that price 250 clothes
were sold. Furthermore, the store gave another discount and set a price of IDR 50,000 per
piece of clothing and managed to get 1,000 buyers.
In this case, when the price of goods is sold for IDR 50,000, the quantity of goods
offered is equal to the quantity of goods purchased by consumers, namely 1,000 clothes.
In conclusion, the equilibrium price in the example case is IDR 50.000
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