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Chapter 2 Market Forces-Demand and Supply
Chapter 2 Market Forces-Demand and Supply
Chapter 2 Market Forces-Demand and Supply
Strategy
Chapter 2
Market Forces: Demand and Supply
McGraw-Hill/Irwin
Michael R. Baye, Managerial Economics and
Business Strategy
2-2
OVERVIEW
I. Market Demand III. Market Equilibrium
Determinants of Demand IV. Price Restrictions
The Demand Function V. Comparative Statics
Demand Shifters
Determinants of Demand
Price (Px) Law of Demand
Income (I)
Normal good
Inferior good
Prices of Related Goods (Py)
Demand Prices of substitutes
Shifters
Prices of complements
Advertising (A)
Consumer tastes (T)
Population (Pop)
Consumer expectations (Pe, Ie, PAe)
Feature (F)
Any other variable affecting demand (O)
2-5
Price
D
Quantity
2-6
A
10
B
6
D0
4 7 Quantity
2-9
Change in Demand
Price
D0 to D1: Increase in Demand
6
D1
D0
7 13 Quantity
Demonstration Problem 2-1
d
QX 12.000 3PX 4 PY 1M 2 Ax
Fungsi Permintaan secara sederhana :
d
Q X 6.060 3PX
Fungsi Permintaan invers :
PX 2.020 0,333Q X
2-11
The supply curve shows the amount of a good that will be produced at
alternative prices.
Law of Supply
The supply curve is upward sloping.
Price
S0
Quantity
2-12
Supply Shifters
Input prices (Pi)
Technology (T)
Number of firms (Nf)
Entry
Exit
Prices of Related Goods (Py)
Taxes (Tx)
Excise tax = lumpsum tax
Ad valorem tax = proporsional tax
Producer expectations (Pe)
Any other variable affecting demand (O)
2-13
S0
B
20
A
10
5 10 Quantity
2-16
Change in Supply
S0 to S1: Increase in supply
Price
S0
S1
5 7 Quantity
Demonstration Problem 2-3
Q X s 2.000 3PX 4 Pr Pw
Fungsi Permintaan secara sederhana :
Q X s 400 3PX
Fungsi Permintaan invers :
PX 133,33 0,333Q X s
2-18
7
6
Shortage D
12 - 6 = 6
6 8 12 Quantity
2-20
6 8 14 Quantity
2-21
IV. Price Restrictions
Price Ceilings
The maximum legal price that can be charged.
Bertujuan untuk membantu konsumen
Istilah Ceiling merujuk pada harga itu menjadi harga yang paling tinggi yang diijinkan di
pasar harga yang ditetapkan di bawah harga ekuilibrium
Akibat : muncul shortage
Price Floors
The minimum legal price that can be charged.
Bertujuan untuk membantu produsen
Istilah Floor merujuk pada harga itu menjadi harga yang paling rendah yang diijinkan di
pasar harga yang ditetapkan di atas harga ekuilibrium
Akibat : muncul surplus
2-22
PF
P*
P Ceiling
Shortage D
Qs Qd Quantity
Q*
2-23
P*
Qd Q* QS Quantity
2-24
IV. Comparative Static Analysis
(Analisis Statistik Komparatif)
How do the equilibrium price and quantity change when a determinant of supply and/or
demand change?