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Willing and able to purchase a product at a

particular price
How many of you would like a camry [or like
vehicle]?
How many of you are able?
Whats the difference between willing and able?
Idea of time and place at this time, you may be
willing to buy a camry, but are not able, therefore
you do not have a DEMAND for a Camry

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Demand schedule: A table that lists at various

prices, the number of items demanded.
Demand Curve: the graphic representation of
demand.
Graphing a Demand Schedule:
1. The lower left quadrant is 0
2. The vertical axis is price
3. The horizontal axis is quantity
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As price falls, the quantity demanded increases. As

the price rises, the quantity demanded decreases
P QD

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Qd = 100 10P
Qd = Permintaan beras (kg)
P = harga beras/ kg (rb rph)
P
10

Harga (P)

Kuantitas (Qd)

0
2
4
6
8
10

100
80
60
40
20
0

QD = 100 10P

Skedul permintaan

D
0

20

60

100

Kurva permintaan
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Price per pound of

coffee beans

Quantity of Coffee
Beans Demanded
(billions of pounds)

$2.00

7.1

1.75

7.5

1.50

8.1

1.25

8.9

1.00

10

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Change in Quantity Demanded:

Caused by change in own price of good
Movement along the curve

Change in Demand:

Caused by Change in determinant of demand

Shift to new demand curve

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P
Ceteris Paribus

1. Penurunan
Tingkat harga

P1
P2

D
Q1

Q2

2.meningkatkan kuantitas
barang dan jasa yang dimintal

Change in Quantity Demanded

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D
Q

Q1

D1

Change in Demand

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D2
Q2

Change in Demand

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D1
D2
Q2

D
Q1

Change in Demand - Caused by Change in determinant of demand :

Income
Prices of Related Goods
Preference/taste
Consumer expectations
Population
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Income
Normal Good: a good for which demand

increases as consumer incomes rise (ex. milk)

Inferior Good: A good for which demand
decreases as consumer incomes rise (bus rides)
As income rises consumers tend to switch from
consuming these inferior goods to consuming
normal goods (ex. steak, car/plane)

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Preference/Taste

Likes and dislikes in consumption

Consumer Expectations

Change in future price of goods

Change in future income

Population Change

As the number of consumers in a market changes

the demand will change

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Prices of Related Goods

Substitutes: Goods that are related in such a way
that an increase in the price of one leads to an
increase in the demand for the other [goods that
can be consumed in place of one another] (Pepsi
and Coke)
Compliments: Goods that are related in such a way
that an increase in the price of one leads to a
decrease in the demand for the other [goods that
are normally consumed together] (coffee and
sugar)

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Related Goods

Compliments

Substitutes

1,5

1,5

Demand

0,5

0,5

6 7 8 9 10
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Demand

6 7 8 9 10
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What Makes A Producer Provide the

Quantity of Goods & Services?
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Supply indicates how much a good

producers are willing and able to offer for
sale per period at each possible price,
other things constant.

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As a goods price increases

(decreases), the quantity suppliers are
willing and able to supply increases
(decreases)
The quantity supplied is usually
directly related to its price P QS

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A Supply Schedule displays the quantity of a

product supplied at each price
Price

Bottles Supplied

2.00

11.6

1.75

11.5

1.50

11.2

1.25

10.7

1.00

10

.75

9.1

.50

8
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A Supply Curve shows a graphic representation of the

quantities of a good supplied at various prices

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Qs = -40 + 20Px
Qs = Penawaran beras (rb kg)
Px = harga beras/ kg (rb rph)
P

Qs = - 40 + 20 Px

Harga (Px)

Kuantitas (Qs)

6
5
4
3
2

80
60
40
20
0

Skedul penawaran

6
4
2
0

20

40

60

80

Kurva penawaran
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Change in a goods own price causes

change in quantity supplied
Movement along the supply curve

Change in supply caused by change in

determinant of supply
Shifts supply curve

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Ceteris paribus
S

1. Penurunan
Tingkat harga

P1
P2

Q2

Q1

2.menurunkan kuantitas
barang dan jasa yang ditawarkan.

Kurva Penawaran: menyatakan unit barang atau jasa yang akan ditawarkan
oleh produsen (Qs) pada berbagai tingkat harga pada suatu periode waktu.
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P
S2

S1

Q2

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Q1

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Technology
If more efficient technology is discovered

production costs will fall

So suppliers will be more willing and able to supply
more of the good at each price

Price of Relevant Resources

Those resources employed in the production of a

good.

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Prices of Alternative Goods

Price of good that use some of the same resources

as used to produce the good in question

Producer Expectations

Shift production according to future prices

# of Prod. Increases # of supply

Number of Producers

Government Restrictions

Taxes, quotas, licenses, etc.

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Demand & Supply at center of market

Mutually beneficial for demander & suppliers
to come together and make exchanges

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The costs of time and information required for

exchange
Example: You are looking for a summer job. One way is to

go from employer to employer looking for openings. Both

time consuming and could take extensive travel. A better
strategy would be to pick up a couple of local newspapers
and read through the help-wanted ads.

Adam Smiths Invisible Hand brings these forces

together.

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At equilibrium there is no inherent

tendency to change
Equilibrium
60
Price

40

Supply

20

Series2

0
1

Quantity
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When the Market Wont Compromise

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When the quantity supplied exceeds the

Surplus
quantity demanded
60
P ric e

Supply

40

Demand

20

Surplus

0
1

Quantity
What is the amount of surplus at $40?
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When there is an excess of quantity

demanded compared to quantity supplied
Shortage
60
Price

Supply

40

Demand

20

Shortage

0
1

Quantity

What is the amount of shortage?

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Price tends toward Equilibrium

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P ric e

Equilibrium
80
60
40
20
0

Supply
Demand
Demand Shift
1

Quantity
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Price

Equlibrium
80
60

Supply

40
20

Demand
Supply Shift

0
1

Quantity
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Approach to Analyzing Changes

1. Determine what changes: demand and/or
supply
2. What direction is change: increase/decrease
3. Find new equilibrium price/quantity

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Price

Concert Tickets
200
150

Supply

100
50
0

D1
D2
1

Quantity

What is the initial Price Equilibrium?

What is the New Price Equilibrium?
What factors (determinants) may have caused this
shift?
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Price

Subsidies to Public Universities

200
150

S1

100
50
0

Demand
S2
1

Quantity

What is the initial Equilibrium Price/Quantity?

What is the New Equilibrium Price/Quantity?
Why would the Government get offer subsidies to
Universities?
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When the Government Gets Involved

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A legal maximum that can be charged for a good

Results in a Shortage
Ex. cement, credit card interest rates, oil
Shortage
60
Price

Supply

40

Demand

20

Shortage

0
1

Quantity
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A legal minimum that can be charged for a good.

Results in a Surplus
Ex. minimum wage, milk, sugar
Surplus

Price

60
50
40
30
20
10
0

Supply
Demand
Surplus

Quantity

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Kasus pasar mobil sedan

1.

Permintaan: Qd = 200 10P

Penawaran: Qs = -40 + 5P
dimana: Qd, Qs = ribu unit per tahun.
P
= puluh juta rupiah per unit.
Ditanyakan : Keseimbangan pasar?

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Keseimbangan Pasar:
Qd = Qs
200 10P = - 40 + 5P
240
= 15P
P
= 16
Maka: Qd = 200 10*(16) = 40
Qs = - 40 + 5*(16) = 40
Jadi keseimbangan terjadi pada saat harga mobil Rp
160 juta per unit; serta jumlah permintaan sama
dengan penawaran yaitu 40 ribu unit.
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Harga
(juta rph)

S
Qs = -40 + 5P

200
180

160

140

Qd = 200 10P

80

D
0

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40

200

Kuantitas mobil
(ribu unit)

2.

Kasus pasar gabah.

Permintaan: Qd = 2000 3P
Penawaran: Qs = -500 + 2P
dimana: Qd, Qs = ribu ton per musim.
P
= ribu rupiah per ton.
Ditanyakan :
1. Keseimbangan pasar?
2. Bila pemerintah berniat menambah jumlah gabah
dengan menetapkan harga dasar 600 ribu rupiah per ton,
apa yang terjadi pada pasar gabah tersebut. Apa upaya
pemerintah untuk menangulangi hal tersebut?

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Kasus pasar tenaga kerja.

3.

Permintaan: Qd = 20000 0.6P

Penawaran: Qs = -5000 + 0.4P
dimana: Qd, Qs = jiwa per bulan.
P
= upah per hari.(rupiah)
Ditanyakan :
1. Keseimbangan pasar?
2. Bila pemerintah menetapkan upah minimum 30
ribu rupiah per hari, apa yang terjadi terhadap
angkatan kerja (pengangguran)?
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