ASSIGNMENT 1 ENGLISH

NAME : MOSES SUMANIK

NIM : 043197795

PROJECT : ACCOUNTING

I will choose topic number 2, which is about demand and price. The following is the
essay outline that I made:
1. PARAGRAPH 1: INTRODUCTION
 Explain what demand is and the factors that influence it
 State the thesis or main argument, namely that if suppliers charge too much
for a product, then demand will decrease
 Provide an overview of the points that will be discussed in the next paragraph

2. PARAGRAPH 2: BODY
 Explain the concept of the law of demand, namely the negative relationship
between price and quantity demanded
 Provide concrete examples of markets that experience a decrease in demand due to
rising prices, for example gasoline, masks, or plane tickets
 Use graphs or tables to illustrate changes in demand due to price changes

3. PARAGRAPH 3: CONCLUSION
 Summarize the main points discussed in the previous paragraph
 Conclude that demand is influenced by many factors, but one of the most
important is price
 Provide suggestions or recommendations to suppliers to set prices in accordance
with market conditions and consumer preferences

 The following is an example of an essay based on the framework above:

Demand is an economic concept that relates to consumers' desire to purchase goods and services and
their willingness to pay a certain price for those goods. Demand is influenced by many factors, such as
income, tastes, expectations and number of consumers. However, one of the most influential factors is
price. In this essay, I will discuss what will happen to demand if suppliers charge too much for a product.
I would argue that if the price of a product is too high, then demand will decrease.

One of the basic concepts in economics is the law of demand, namely the negative relationship between
price and quantity demanded. This means that the higher the price of a product, the fewer consumers
are willing and able to buy it. Conversely, the lower the price of a product, the more consumers are
willing and able to buy it. This can be explained using a demand curve, which is a line that shows the
relationship between price and quantity demanded. The demand curve has a negative slope, meaning
that if price rises, quantity demanded falls, and vice versa.

There are many real-world examples of markets experiencing reduced demand due to rising prices. For
example, in 2020, when the COVID-19 pandemic hit the world, the demand for medical masks increased
drastically. However, because masks are in short supply, some suppliers are taking advantage of the
situation by significantly increasing mask prices. As a result, many consumers are unable or unwilling to
buy masks at such high prices. This has caused a decrease in demand for masks in several countries.
Another example is gasoline, which is an item that is very sensitive to price changes. If gasoline prices
rise due to factors such as taxes, production costs, or global demand, many consumers will reduce their
use of motorized vehicles or look for other alternatives such as public transportation or electric vehicles.
This will also reduce demand for gasoline. A third example is airline tickets, which are a luxury item that
is only sought after by consumers with high incomes. If airline ticket prices rise due to factors such as
fuel costs, operating costs, or competition, many consumers will cancel or postpone their air travel or
look for cheaper airlines. This will also reduce demand for plane tickets. The following is a table showing
examples of changes in demand due to price changes:

Product Starting Initial New New Change

Price Quantity price Quantity Request
Face mask Rp 2.000 100 Rp 50 Turun 50%
10.000
Gas Rp 100 Rp 80 Turun 20%
10.000 15.000
Flight Rp 100 Rp 60 Turun 40%
ticket 5.000.000 7.500.000

From the table above, it can be seen that an increase in price causes a decrease in quantity demanded,
which means a decrease in demand.

From the description above, it can be concluded that demand is an economic concept related to the
desire and willingness of consumers to buy goods and services at a certain price. Demand is influenced
by many factors, but one of the most important is price. If a supplier charges too much for a product,
then demand will decrease, because consumers will look for substitute goods or services that are
cheaper or more useful. Therefore, suppliers must set prices in accordance with market conditions and
consumer preferences, in order to maintain their demand and profits.