Vina Arnita,SE,MA Acc,Msi

Demand Theory explains the character of the

relationship between the demand and prices.

Demand is the desire of consumers in buying

an item at various price levels over a certain
period of time.

Based on the characteristics of the

relationship between demand and price
graphs can be made demand curve.
Some Determinants of Request
A person's or community's demand for an item
is determined by various factors including:
1. Price of the item itself.
2. Prices of other goods are closely related to
these items.
3. Household income and community average
income.
4. The pattern of income distribution in
society.
5. Community taste.
6. Total population.
7. Predictions about the state in the future.
In economic analysis it is assumed that the
demand for an item is mainly influenced by
the price level.

Therefore, in theory the demand that is mainly

analyzed is the relationship between the
amount of demand for an item and the price
of the item.

In the analysis it is assumed that "other factors

have not changed" or "ceteris paribus".
Price and Demand
Law of Demand: the lower the price of an item,
the more demand for that item, conversely
the higher the price of an item, the less
demand for that item.
The nature of the relationship between the
quantity of demand and the price level can be
explained as follows:
The nature of the relationship is due to price
increases causing buyers to look for other
goods that can be used as a substitute for
goods that experience price increases.
An increase in price causes the real income of
buyers to decrease
The requisition is a table that provides
figures in figures about the relationship
between the price and the amount of
goods demanded by the public.

The demand curve can be defined as a

curve that illustrates the nature of the
relationship between the price of a
particular Theitem and the quantity of that
demand towards to book towards price levels
item requested by buyers.
Code Price (Rp) Amount of demand (unit)
P 5.000 200
Q 4.000 400
R 3.000 600
S 2.000 800
T 1.000 1.000
Individual Demand and Market Demand
Demand for an item can be seen from two angles,
namely the demand made by someone and the
demand made by everyone in the market.
Therefore in the analysis it is necessary to
distinguish between individual demand curves and
market demand curves. To obtain a market
demand curve, the curves of various individuals in
the market must be added
The demand towards to book towards price levels

Amount of demand (unit)

Price (Rp)
Ali Badu Markets
5.000 10 10 20
4.000 15 15 30
3.000 30 20 50
2.000 50 30 80
1.000 70 45 115
The effect of factors not price towards the demand
1. Price of the other goods
The relationship between an item and various
other types of goods can be divided into three
categories, namely (i) that other item is a
substitute item, (ii) that other item is a
complementary item, (iii) the two goods have no
connection at all (neutral goods ).
2. Buyer's Income
Changes in income always cause changes in
demand for various types of goods. Based on the
changing nature of demand if income changes,
various goods can be divided into 4 categories,
namely inferior goods, essential goods, normal
goods and luxury goods.
3. Revenue Distribution
The distribution of income can also influence
the mode of demand for the different types
of goods. A certain amount of community
income will cause a different pattern of
community demand if the income is changed
in the style of distribution.
4. Community Taste
Taste has a considerable influence on people's
desire to buy goods.
5. Total population
Increasing population does not in itself cause increased
demand. But usually population growth is followed by
developments in employment opportunities. Thus
more people receive income and this adds to
purchasing power in society. This increase in
purchasing power will increase demand.
6. Expectations about the Future
Consumer predictions that prices will become higher in
the future will encourage them to buy more in the
present, to save expenses in the future. On the
contrary, the prediction that job vacancies will be
increasingly difficult and economic activity will
experience a recession, will encourage people to save
more on spending and reduce demand
Movement Along the Demand Curve
Changes along the demand curve apply if the price of
goods demanded becomes higher or decreases.

Demand Curve Shift

The demand curve will move to the right or left, if there is
a change in demand caused by non-price factors.
If the prices of other goods, the income of buyers and
various other non-price factors change, then this change
will cause the demand curve to move right or left.
The demand curve moves to the right then shows the
increase in demand and the demand curve moves to the
left shows the reduction in demand.
For example, the income of buyers has increased and
other factors have not changed, then the increase in
income can increase demand.