Assignment-2: Demand and Supply Equilibrium

Describe the terms below, and each give an example

No Terminology Describe Example

1 Demand any number of goods given in a 1 kg of carp is priced at IDR 50,000,
particular market at a certain Jusuf will buy 10 kg.
price level at a certain level of
income and in a certain period.
2 Demand Schedule A table or list that shows the Aldi wants to buy a bowl with a
number of units of one type of price of 20,000, the number of
good (or service) that a buyer views is 120, and to buy a bowl for
will offer to buy at each for a 18,000 which asks for 140 and so
number of amounts that vary on.
in price over some specified After knowing the price and the
time period. amount of the order, you can
create a table with the information
above
3 Demand Curve The demand curve, in
economics, is a graphical
representation of the
relationship between the price
of a product and the quantity
of the product demanded
4 Law of Demand It works with the law of supply If the price of movie tickets drops
to explain how market to $ 3 each, the demand for movies
economies allocate resources will likely go up. As long as the
and determine the prices of utility from watching a movie
goods and services that we exceeds the $ 3 price tag, demand
observe in everyday will increase. Once consumers are
transactions. satisfied with seeing enough films,
for now, ticket demand will drop.
5 Determinants of Demand The determinants of demand - The price of the good or
are factors that cause service.
fluctuations in the economic - The income of buyers
demand for a product or a
service. A shift in the demand
curve occurs when the curve
moves from D to D₁, which can
lead to a change in the quantity
demanded and the price.
6 Change in Quantity Demand A change in quantity Price changes change the quantity
demanded refers to a change demanded; changes in consumer
in the specific quantity of a preferences change the demand
product that buyers are willing curve. If, for example, an
and able to buy. This change in environmentally conscious
quantity demanded is caused consumer shifts from gasoline-
by a change in the price powered cars to electric cars, the
demand curve for traditional cars
will inherently shift.
7 Change in Demand Changes in demand describe a The price of related goods: If the
shift in the desire of consumers price of beef rises, you'll buy more
to buy certain goods or chicken even though its price didn't
services, regardless of price change. The increase in the price of
variations. Such changes can be a substitute, beef, shifts the
triggered by shifts in income demand curve to the right for
levels, consumer tastes, or chicken. The opposite occurs with
different prices charged for the the demand for Worcestershire
related product. sauce, a complementary product.
8 Supply Supply is a fundamental There was a drought and very few
economic concept that mangoes were available. More
describes the total amount of a people want mangoes than the
specific good or service that is available berries. The price of
available to consumers. Supply mangoes has increased
can relate to the amount dramatically. A large influx of
available at a specific price or unskilled and new workers came to
the amount available across a the city and all workers were
range of prices if displayed on a willing to take low-paying jobs.
graph.
9 Determinants of Supply The change in the price of a changes in non-price factors that
product causes the price- will cause the entire supply curve
quantity combination to move to shift (increase or decrease
along the supply curve. market supply); These include
1) the number of sellers in the
market,
2) the level of technology used in
the production of goods,
3) the price of the inputs used to
produce the goods
4) the number of government
regulations, ...
10 Law of Supply The law of supply states that The law of supply summarizes the
other factors remain constant, effect of changing prices on
and the price and quantity producer behavior. For example, a
supplied by a good are directly business will build more video
related to one another. In game systems if the price of those
other words, when the price systems increases. Conversely, if
paid by a buyer for a good the price of the video game system
increases, the supplier goes down.
increases the supply of that
good
11 Equilbrium quilibrium is the state in which balance is when you are calm and
market supply and demand steady. An example of equilibrium
balance each other, and as a is when hot air and cold air enter a
result prices become stable. room at the same time so that the
overall room temperature does not
change at all. Mental or emotional
balance. A state of balance or
equality between opposing forces.
12 Excess Demand In microeconomics, the excess Excess demand is demand minus
demand function is a function supply. Example 1. A baker posts a
that expresses excess demand sale price of $ 2 per loaf of bread.
for a product - an excess of the At this price, he is willing to sell up
quantity demanded over the to 300 loaves of bread (per day),
quantity supplied - in relation but consumers are willing to buy
to the price of the product and only 200.
possibly other determinants. It
is a product demand function
minus its supply function.
13 Excess Supply In economics, an excess supply Excess supply in a perfectly
or economic surplus is a competitive market is the amount
situation where the quantity of of "extra" supplied, beyond the
goods or services supplied is quantity demanded. For example,
more than the quantity suppose the price of a television is
demanded, and the price is $ 600, the quantity supplied at that
above the equilibrium level price is 1000 televisions, and the
determined by supply and quantity demanded is 300
demand. televisions.
14 Change Equilibrium Equilibrium is a state in which Reaksi akan bereaksi seolah-olah
market supply and demand ada reaktan atau produk yang
balance each other, and as a ditambahkan dan akan bertindak
result prices stabilize. sesuai dengan pergeseran ke sisi
lain. Misalnya, jika suhu dinaikkan
untuk reaksi endotermik, pada
dasarnya reaktan ditambahkan,
sehingga kesetimbangan bergeser
ke arah produk.
15 The difference between Supply Demand is the desire of the Supply refreshes the number of
and Demand buyer and his ability to pay for items available. Request refresh
a particular commodity at a how many people want the item.
certain price. Supply is the When the supply of a product rises,
quantity of a commodity the price of a product falls and the
provided by producers to demand for the product can
consumers at a certain price increase due to cost losses. ... As a
result, the price will go up.