Ekoling English

7/17/2019 Ekoling English

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The Market Forces of

Supply and Demand



Member of Group

Arisa Aqmarina

Adistia D.K

Dimas Aji S.

Hashfi Hawali

Irham Auliya A. M. Ferry R.

Jayanti M.

Rahmat Tubaus

!atri"ia #.

Astrid !ardede

Jalu Arthawidya

Maria Faustina $%friani S.

Mutiara Adella



Markets

A mar&et is a r%u' %f buyers and sellers %f

a 'arti"ular %%d %r ser(i"e. The terms su''ly and demand refer t% the

beha(i%r %f 'e%'le . . . as they intera"t with%ne an%ther in mar&ets.

And )"%n%mi"s* es'e"ially Mi"r%e"%n%mi"sis ab%ut h%w su''ly and demand intera"t inmar&ets.



Market Types or Structures

#%m'etiti(e Mar&ets

!r%du"ts are the same*'ri"e ta&ers

M%n%'%ly

M%n%'%listi" #%m'etiti%n

+li%'%ly



Demand Curve

$3.002.5

02.001.50

1.00

0.50

21 3 4 5 6 7 8 9 10

12

11

Price of

Ice-CreamCone

Quantity

of Ice-Cream

0



Why does the Demand

Curve Slope Downward? ,aw %f Demand

In(erse relati%nshi' between 'ri"e and

quantity.

,aw %f Diminishin Marinal -tility.

-tility is the etra satisfa"ti%n that %ne

re"ei(es fr%m "%nsumin a 'r%du"t.Marinal means etra.

Diminishin means de"reasin.



Market Demand

Mar&et demand refers t% the sum %f all

indi(idual demands f%r a 'arti"ular

%%d %r ser(i"e.

/ra'hi"ally* indi(idual demand "ur(es

are summed horizontally t% %btain the

mar&et demand "ur(e.



Ceteris aribus

Ceteris paribus is a ,atin 'hrase that

means all (ariables %ther than the

%nes bein studied are assumed t% be

"%nstant. ,iterally* ceteris paribus

means 0%ther thins bein equal.1

The demand curve slopes downward

because! ceteris paribus! lower prices

imply a "reater #uantity demanded$



Determinants of Demand

Mar&et 'ri"e

#%nsumer in"%me

!ri"es %f related %%ds

Tastes

)'e"tati%ns 2hat are s%me eam'les3



Consumer %ncome&ormal Good

$3.002.5

02.001.50

1.00

0.50

21 3 4 5 6 7 8 9 10

12

11

Price of

Ice-CreamCone

Quantity

of Ice-Cream

0

Increasein eman

!nincrease

inincome...

D4

D5



Consumer %ncome%nferior Good

$3.002.5

02.001.50

1.00

0.50

21 3 4 5 6 7 8 9 10

12

11

Price of

Ice-CreamCone

Quantity

of Ice-Cream

0

"ecreasein eman

!n

increasein

income...

D4D5



rices of 'elated Goods

Substitutes ( Complements2hen a fall in the 'ri"e %f %ne %%d

redu"es the demand f%r an%ther %%d*

the tw% %%ds are "alled substitutes .2hen a fall in the 'ri"e %f %ne %%d

in"reases the demand f%r an%ther

%%d* the tw% %%ds are "alled

"%m'lements .



Supply Curve

$3.002.5

02.00

1.50

1.00

0.50

21 3 4 5 6 7 8 9 10

12

11

Price of

Ice-CreamCone

Quantity

of Ice-Cream

0



)aw of Supply

The law %f su''ly states that there is a

direct (positive) relationship between'ri"e and quantity su''lied.



Chan"e in *uantity Supplied

1 5

Price ofIce-CreamCone

Quantity

of Ice-Cream

0

S

1.00

!

C$3.0

0

A rise in the 'ri"e

%f i"e "ream "%nesresults in a

m%(ement al%n

the su''ly "ur(e .



Market Supply

Mar&et su''ly refers t% the sum %f

all indi(idual su''lies f%r all sellers

%f a 'arti"ular %%d %r ser(i"e.

/ra'hi"ally* indi(idual su''ly

"ur(es are summed horizontally t%%btain the mar&et su''ly "ur(e.



Determinants of Supply

Mar&et 'ri"e

In'ut 'ri"esTe"hn%l%y

)'e"tati%ns

$umber %f 'r%du"ers

2hat are s%me eam'les3



#u%y

"eman


Quantity

of Ice-Cream

+#uilibrium of

Supply and Demand

21 3 4 5 6 7 8 9 10 12110

$3.00

2.502.00

1.5

01.00

0.50

&'ui%i(rium




Quantity

of Ice-Cream

21 3 4 5 6 7 8 9 10

12110

$3.00

2.50

2.00

1.5

01.00

0.50

#u%y

"eman

#ur%us

+,cess Supply



+,cess Demand

Quantity of Ice-Cream Cones

Price of Ice-Cream

Cone

$2.00

0 1 2 3 4 5 6 7 8 9 10 11 12 13

#u%y

"eman

$1.50

#)orta*e



Thank -ou

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Ekoling English