DEMAND

THE THEORY OF DEMAND

 The teory of demand explains about the

demand of buyers for goods or services.
 Relation between demand and price can
be drawn as a demand curve.
DEMAND FACTORS
 The price of the goods.
 The other goods price.
 Households incomes and average incomes of
society
 Distribute of incomes in society.
 Taste.
 Population
 Prediction about the future.
THE THEORY OF DEMAND

 The demand of the goods influenced by

the price level.
 Dalam teori permintaan yang terutama
dianalisis adalah hubungan antara
jumlah permintaan suatu barang dengan
harga barang tersebut.
 Analyze about the relation between the
number of the demand with goods price.
THE LAW OF DEMAND

The more lower the price of goods, the

demand will be increase. The more higher
the price of goods, the demand will be
decrease.
DEMAND CURVE

Describe the relation between goods price

with the demand of goods.
 Demand to the book at the various price
levels
Condition Price Demand
D
(rupiah)
P 5000 200
5 P

Harga (ribu rupiah)

Q 4000 400 4 Q

R
R 3000 600 3
S
2 T
S 2000 900 D
1
T 1000 1300
0 200 600 1000 1400
Kuantitas
INDIVIDUAL DEMAND VS
MARKET DEMAND
 Individual demand → the demand
that conducted by individual or
someone
 Market demand → the demand that
conducted by people in the market
 To obtain market demand curve,the
demand curve from all individu in
the market should be added up.
 Ex : Market demand to book

Price Total Demand

(Rp)
Ali’s Demand Badu’s Demand Market Demand

5000 10 10 20

4000 15 15 30

3000 30 20 50

2000 50 30 80

1000 70 45 115
 Individual Demand Curve and Market
Demand
Harga Harga Harga
(ribu Rp) (ribu Rp) (ribu Rp)

5 5 5

4 4 4

3 3 3

2 2 2
D
1 D 1 D 1

Q Q Q
0 20 40 60 80 0 20 40 60 0 40 80 120

Permintaan Ali Permintaan Badu Permintaan Pasar

IMPORTANT FACTORS THAT
CAN AFFECT DEMAND
 Substitution Goods
Goods that can be replace the other goods
function. Ex: coffee and tea
 Complementary Goods
that always used with other goods. Ex: sugar,
clothes/shoes.
 Neutral Goods
Goods that have no relation with anything. Ex:
rice, book.
CONSUMER INCOMES

The important factor that influenced

demand.
Based on demand character, if income
changes than goods can be divided into 4
groups:
1. Inferior Goods
goods that low income people requested. Ex: cassava
2. Essensial Goods
the important goods in people’s daily lives. Ex: rice.
3. Normal Goods
it can be a normal goods when the goods have the
demand increased as a result of the incomes
increased. Ex: clothes
4 Luxury Goods
people will buy this goods when they have a high
incomes.
The other factors affect demand :

Incomes distribute
Taste
Total Population
The Future Expectations
 Movement Along The Demand Curve

D
It can be happen when the
price of goods become more
higher or more lower. 5

Harga (ribu rupiah)

Ex: DD is a market demand 4 T
curve to a books and in the
R
first, price of the book is Rp 3
3000 and the demand is 600. S
2
This condition showed by point
R. D
1

0 400 600 900 1300

Kuantitas
Shift in the Demand Curve

 Demand curve will be move to the right

or left when there is a demand changes
caused by factors except price.
 This example for demand curve movement when
buyers incomes increased

D2 D D1

A2 A A1
P
Harga

D1
D
D2

0 Q2 Q Q1 Kuantitas