Demand: is about what people need and it depends on their economic to pay the price for the

services or the economic goods. Demand can change increase or decrease according to demand, other
factors than price and the consequences of change in actual price are no change in demand.

Quantity demanded: is about the number of specific customer requests for a specific price of
goods or services. And that is the number of goods at a certain price. Quantity demanded change can be
expanded or contraction according to demand and price and the consequences of change in actual price
to change the quantity demanded.

Individual Demand Schedule:

Individual demand schedule refers to a tabular statement showing various quantities of a commodity that
a consumer is willing to buy at various levels of price, during a given period of time.

Market Demand Schedule:

Market demand schedule refers to a tabular statement showing various quantities of a commodity that
all the consumers are willing to buy at various levels of price, during a given period of time. It is the sum
of all individual demand schedules at each and every price.

Market demand schedule can be expressed as:

Where demand is the market demand and Demand A + Demand B +... are the individual demands of
Household A, Household B and so on.

Law of demand: the prices of goods increase, so the quantity demanded decreases. When
the price of goods decreases, the quantity demanded decreases, too. Clearly, the customers will
buy more products at lower prices and buy fewer products at higher prices.

Determinate of demand:
1. Income of the consumer: it is divided into normal goods and fewer goods. Normal goods
such as clothes, rice, furniture are necessary. If increase income, demand will increase and
in contrast to this, if a decrease in income, demand decrease. Fewer goods are that increase
income will cause decrease demand and opposite with that.
2. Price of the good: use the concept of supply and demand to determine the price of the good.
The price of the good is impacted by the quality product and the customer’s needs. For
example, Apple company supplies different iPhone models with various price but each model
has a variety price and flavor.
3. Price of related goods: They have two types, there are substitute goods and complement
goods. Substitute goods are goods that can be used to replace each other, replacement prices
and need directly related. For example, when the price of the favorite product of customers is
coffee that increases, they will look for other products like tea, cacao to relate to it at a better
price for their demand increase. Towards complement goods are goods can be used together.
For example, when customers want to buy the motorbike and they have to use gas petrol.
 However, the price of gas petrol increase higher before, so the demand for customers to buy
motorbike will decrease.
4. Taste and preferences to the consumer: can effect by hoppy and many other factors. For
example, such as lifestyles, customs, common habits, change in fashion, the standard of
living, religious values, age, other things. And apart from this, demand is also influenced by
the habits of consumers.
5. Other factors:
 Firstly, that is the expectation of consumers about changes in the prices of products in
the future. This will affect the demand for those products in a short period of time. In
addition, the scarcity of specific products that can increase consumer demand in the
future. On the other hand, consumers will suspend the purchase of products that may
be predicted to be reduced in the future.
 Secondly, that is about the effect of advertisements are one of the important factors in
determining the demand for a product. Effective advertisements are helpful in many
ways, such as catching the attention of consumers, informing them about the
availability of a product, demonstrating the features of the product to potential
consumers, and persuading them to purchase the product. Consumers are highly
sensitive about advertisements as sometimes they get attached to advertisements
endorsed by their favorite celebrities. This results in the increasing demand for a
product.
 Thirdly, that is the distribution of income in the society that can affect consumers
demand for products on the market to a great extent. and the distribution of income in
society is very different so this can lead to different high or low product consumption
in society.
 Fourthly, that is the growth of population is behavior, as well as an important factor,
can affect market demand for products. If the number of consumers increases in the
market, consumer consumption will also increase. Therefore, high population growth
will lead to an increase in demand for different products.
 The fifth, that is about government policy is one of the main factors affecting the
demand for a product. For example, if a product has a high tax rate, this would
increase the price of the product. Finally, that is climatic conditions can affect the
demand for a product to a greater degree. For example, the demand of ice-creams and
cold drinks increases in summer, while tea and coffee are preferred in winter.
Therefore, there are different product requirements in different climatic conditions.

Law of supply: when the price increases, the quantity increase too or price decrease, the
quantity decrease. Relationship between price and quantity have connected with each other.
The price goes up mean the customer is in demand with that product. When quantity not
enough for customer so the price will increase. Supplier sees the benefits of the product so they
will increase production. In opposite with this, when the customer does not have demand with
some product they won’t buy it leading to the supplier have to decrease that product price and
supplier will not invest more to that product
For example, smartphone company produces a new smartphone and it becomes a trendy so
the company will increase production that smartphone, and with another phone was produced
2, 3 years ago and the price of it goes down, the company will decrease production that old
smartphone to invest in other products.

Supply shifters: they are the person who supplies products for the market. To become a
standard supplier you must pay attention to some keys.
- Input price: you can set price for your product depending on your investment
- Technology or government regulations:
o the company must follow the rule that the government set up about economic,
license,...
o Technology makes the product more convenient, more benefits for the user
- Number of firms: show that your products are a monopoly or perfect competition depend
on the number of seller and buyer
- Substitutes in production: have another product to replace that have another benefit for
customer depend on the demand of the customer
- Taxes: is one of the most important factors that determine your revenue
- Producer expectation: choose the product that its producer gives the product’s benefits
and its suitable for the customer.