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Mochamad

Kholilur Rohman
210432620488
DEMAND & sUPPLY

Here is where your


presentation begins
Demand & Supply

Demand & Law of Supply & Law of


Circular flow diagram Demand Supply

Market Equilibrium
The circular flow Diagram shows the
connections between firms and households in
input and output markets.
Circular Flow Diagram

Output markets are the markets in


which goods and services are
exchanged.

Input markets are the markets in which


resources, labor, capital, and land sed
to produce products, are exchanged.
DEMAND

Demand is the Quantity


of goods purchased or
requested at a certain price and
time.
The law of demand is a law that explains the
existence of a negative relationship between the price
level and the quantity demanded. If the price
increases, the quantity demanded will decrease, and if
the price is low, the quantity demanded will increase.
This happens if, other factors other than price are
considered constant.

Time is running out!


Example of
Demand

In the market, when the price of


meat is IDR 100,000, the demand
is 50 kg, when the price rises to
IDR 120,000 The demand drops
to 40 kg.
Other factors influencing demand

1. Prices of related goods, namely substitute and complementary goods.


2. consumer behavior
3. Household Income
4. Total population
5. Goods quantity
6. availability of substitute and complementary goods
7. future predictions
Supply & Law of Supply

Supply is a Quantity of goods sold


or offered at a certain price and
time.

Start!
Law of Supply

The law of supply states that the higher the


price, the greater the quantity supplied. On the
other hand, the lower the price of the good, the
less quantity supplied. and factors other than
price are held constant.
Example of
Supply

When the price of meat is IDR


120,000, the amount of meat
offered is 100 kg. However, when
the price of meat rose to IDR
160,000, the meat offered
increased by 120 kg.
Other factors influencing
Supply

production cost product competition

technology Resource

Quantity of producers government policy


Market Equilibrium

Market equilibrium is a condition in


which the quantity of goods supplied
is equal to the quantity of goods
purchased or demanded and the supply
price is the same as the asking price.
Example

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
Thank You!!!
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