TUGAS TUTORIAL 1

BAHASA INGGRIS NIAGA

NAMA : AYRIZA ALVIANI
NIM : 045163823
PRODI : MANAJEMEN

2. Demand is an economic concept that relates to a consumer's desire to purchase

goods and services and willingness to pay a specific price for them. What will
happen to the demand If suppliers charge too much for a product?

If suppliers charge too much for a product, it is likely to have a negative impact on the
demand for that product. Here are a few possible outcomes:
Decreased demand: When the price of a product becomes too high, consumers may
opt to purchase less or look for alternatives that are more affordable. This can lead to
a decrease in the overall demand for the product.
Shift in preferences: Consumers may choose to buy similar products from other
suppliers or switch to substitute goods that offer similar benefits at a lower price. This
can result in a shift in consumer preferences away from the higher-priced product.
Lower market share: If suppliers consistently charge high prices compared to their
competitors, they risk losing market share to those offering lower prices. This can
lead to a decrease in demand for their product.
Improved competition: High prices in the market can attract new players or
incentivize existing competitors to enter or expand their operations. This increased
competition can drive down prices and give consumers more options to choose from,
further impacting the demand for the higher-priced product.
Brand image and reputation: Charging excessively high prices can negatively affect a
company's brand image and reputation. Consumers may perceive the company as
exploitative or profit-driven, which can lead to a decrease in demand for its products.
Conversely, companies that are perceived as offering fair prices and value for money
may attract more customers.

It is important for suppliers to consider the relationship between price and demand
carefully. While charging higher prices may yield more profits in the short term, it can
have long-term consequences on customer loyalty and market share if it leads to a
decrease in demand.