PRINSIP EKONOMI

P1106
CHAPTER 2 : THEORIES OF
DEMAND AND SUPPLY.
TEORI PERMINTAAN DAN
PENAWARAN

THEORY OF DEMAND
TEORI PERMINTAAN
2.1 DEFINITION OF DEMAND
DEFINISI PERMINTAAN
Demand (D) refers to the desire of a consumers or buyer to

obtain a quantity of goods or service, supported by the

willingness or ability to purchase and pay of the goods or
services at a particular price in a given periods of times. This is
know as effective demand.

Permintaan (D) merujuk kepada keinginan seseorang

pengguna atau pembeli untuk mendapatkan kuantiti

sesuatu barang atau perkhidmatan dan disokong oleh
kesanggupan atau kemampuan untuk membeli dan
membayar bagi mendapatkan barang dan perkhidmatan
tersebut pada tingkat harga tertentu dalam jangka masa
tertentu.

2.1 Demand schedule

Jadual permintaan
A demand
schedule shows
the(RM)
quantityQuantity
of goods
and
Combination
Price
(units)
Kombinasi
Harga
Kuantiti
diminta
service that
will be demand
at (RM)
different
price at
a
(Unit)
particular time, as difited in table.
O

50

Jadual permintaan
menunjukkan
kuantiti2 barang
P
40
dan perkhidamatan
yang 30
diminta pada pelbagai
Q
4
tingkat harga
R seperti yang
20 ditunjukkan dalam
6
jadual.
S
10
8
T

10

Figure 2.1 Demand Curve

Rajah 2.1 Keluk Permintaan

2.2 LAW OF DEMAND

HUKUM PERMINTAAN
The law of demand states that assuming all factors

are equal, ceteries paribus (i.e. everything remains

the same), the higher price of a good, the lower
goods, the higher the quantity that will be demanded
of the good.

Hukum permintaan menyatakan apabila semua

faktor adalah tetap atau ceteris paribus,

apabila harga satu barang naik, kuantiti yang
diminta terhadap barang tersebut akan
berkurangan dan apabila sesuatu harga barang
jatuh kuantiti yang diminta terhadap barang
tersebut adalah tinggi (hubungan songsang).

Substitution Effect
Kesan penggantian
As the price of one goods reses relative to the

price of other goods, you will tend to substitute

the goods that is relatively cheaper for the good
that relative more expensive.
Pengguna yang rasional akan

mengurangkan kuantiti barang yang

mengalami kenaikan harga dan menambah
kuantiti barang yang mengalami kejatuhan
harga. Ini dinamakan kesan penggantian.

Income Effect
Kesan Pendapatan
As the price of the good that you buy increases and

money income is held constant, your real income

deacreases and you cannot afford to buy as much as
you could before.
Apabila harga sesuatu barang jatuh, pendapatan

benar atau kuasa beli pengguna akan

meningkat. Ini bermakna pengguna boleh
membeli barang tersebut dalam kuantiti yang
lebih banyak dengan pendapatan wang yang
sama. Ini dinamakan sebagai kesan pendapatan.

2.3 Demand Function

Fungsi Permintaan
Qd = a bP
where,
Dimana,
Qd = the quantity of demand goods (units).
kuantiti barang diminta (unit).
a = the kuantiti of demand goods when the price is zero. This value will
interest the quantity axis.
kuantiti barang diminta apabila harga adalah sifar. Nilai ini
memotong paksi kuantiti.
- = the negative symbol that indicated the inverese relationship
between the price and quantity demand.
tanda negatif yang menunjukkan hubungan songsang
antara harga dan kuantiti diminta
b = the gradient of the demand curve.
Kecerunan keluk permintaan
P = the price of the goods.
harga barang.

EXAMPLE :
CONTOH :

When the price is 0, the quantity

demand is 36 units, and when
the
quantity demand is 0, the price
is
RM9.

Apabila harga ialah 0,

kuantiti
diminta ialah 36 unit dan
apabila
kuantiti diminta ialah 0,
harga ialah
RM9.
Price
(RM)
Quantity of

Harga (RM)

demand
(unit)
Kuantiti
yang
Diminta
(RM)

32

28

when P = RM1,
Qd = 36 4P
= 36 4 (1)
= 32 units
When P = RM4
Qd = 36 4(4)
= 36 16
= 20 units

INDIVIDUAL DEMAND
PERMINTAAN INDIVIDU

2.4 Types Of Demand Point

Pembahagian Permintaan
Individual demand is the

demand of an individual
consumer for specific good at a
certain price in a given period of
time.
Permintaan individu ialah

permintaan seorang
pengguna terhadap sesuatu
barang pada tingkat harga
tertentu dan dalam jangka
masa tertentu.

Price
(RM)
Harga
(RM)

Quantity
(units)
Kuantiti
(unit)

MARKET DEMAND
PERMINTAAN PASARAN
Market demand is the quantity of good demand by all individual

all consumer in a market at a centain price in a given period of

time. Market demand is combination of the individual demand in
the market.
Permintaan pasaran merupakan jumlah kuantiti yang

diminta oleh semua pelanggan atau individu dalam

pasaran pada harga tertentu dalam jangka masa tertentu.
Permintaan pasaran merupakan gabungan antara semua
permintaan individu dalam pasaran.
Price (RM) Quantity
Quantity
Market
Table
2.4
Harga (RM)
demand
demand
Demand
(A)
(B)
Permintaa
Permintaa Permintaa n Pasaran
n Kuantiti n Kuantiti
(A)
(B)
1

Individu a

Individu b

Pasaran

Figure 2.3 Individual and market curve

Keluk individu dan pasaran

2.5 DETERMINANTS OF DEMAND

FAKTOR YANG MEMPENGARUHI PERMINTAAN

Figure 2.4 Effect of an increase in the price of coffee on the

quantity demand for tea
kesan kenaikan harga kopi terhadap kuantiti diminta
teh

coffee

Tea

Figure 2.5 relationship between the price coffee and

the quantity demand of tea
hubungan antara harga kopi dengan kuantiti
diminta teh

Figure 2.6 Effect of reduced car prices on the quantity

demand of petrol
kesan kejatuhan harga kereta terhadap kuantiti
diminta petrol

Permintaan terhadap
kereta

Permintaan terhadap
petrol

Figure 2.7 Relationship between car prices and quantity

demand for petrol
Hubungan antara harga kereta terhadap kuantiti
dimainta petrol

Unrelated Goods
Barang tidak berkaitan
Unrelated goods are goods that do no influence and have no

relationship with the comsumption of other good.Example of

unrelated goods are petrol are and butter
Barang tidak berkaitan ialah barang yang tidak mempunyai
pengaruh bterhadap penggunaan barang lain dan tidak
mempunyaiu hubungan dengan barang lain.Contoh barang
tidak berkaitan ialah petrol dan mentega
.
When the price of petrol falls.demand for butter will remain
unchangged. Similarly, an increase in the price of houses will not
affect the demand for coffee.Therefore,houses and coffee are
unrelated goods.
Apabila harga petrol jatuh ,permintaan terhadap mentega
tidak akan berubah .Begitu juga kenaikan harga rumah tidak
akan menyebabkan perubahan permintaan terhadap
kopi.Jadi ,rumah dan kopi juga merupakan barang tidak
berkaitan.

Normal Goods
Barang Normal
There is positive relationship

between consumers income and

quantity demand.
o Hubungan antara pendapatan
pengguna dengan kuantiti
barang diminta adalah positif.
When consumers income increase,

the demand for normal good will

increase, and vice versa. Examples
for normal good a televisions and
shoes. This situation occurs because
the increased income enable
consumers to purchase more goods.
o Apabila pendapatan pengguna
meningkat, permintaan terhadap
barang normal akan bertambah
atau sebaliknya. Contohnya
televisyen dan kasut. Keadaan
ini berlaku kerana pertambahan
pendapatan membolehkan
pengguna membeli lebih banyak
barang maka keluk permintaan
akan beralih kekanan.

Figure 2.8 effect of increase

consumers income on demand on
demand for normal goods
Kesan peningkatan pendapatan

INFERIOR GOODS
BAWAHAN
BARANG
Inferior or Giffen goods are

normally of poor quantity and they

constitude a large part of the poor
mans expenditure. Examples of
inferior goods are potatoes, salted
fish, margarine and broken rice.
o Apabila pendapatan pengguna
meningkat, pengguna
cenderung menggantikan
barang bawahan dan
berkurangan. Contohnya,
barang bawahan ialah beras
hancur dan pakaian terpakai.
There is an inverse relationship
between consumer income and
quantity demand for inferior
goods.
o Hubungan antara pendapatan
pengguna dengan kuantiti
diminta bagi barang bawahan
adalah negatif.

Essential Goods
Barangfor
Mesti
Demand
essential goods is not
affected by changes in the
consumers income. Therefore,
the relationship between
consumer income and essential
good is inelastic. In other words,
there is absolutely no relationship
exists between consumers
income and essential goods.
Permintaan terhadap barang

mesti tidak dipengaruhi

perubahan pendapatan
Figure 2.10 EFFECT OF INCREASED INCOME
pengguna. Oleh itu, hubungan
ON DEMAND FOR ESSENTIAL GOODS
antara pendapatan pengguna KESAN PENINGKATAN PENDAPATAN
dengan kuantiti diminta
PENGGUNA TERHADAP PERMINTAAN
BARANG MESTI
barang mesti adalah nuetral
atau sifar.

This is because everyone needs foods to service,

regardless of whetherthe consumer is wealty or poor.

This situation occurs because expenditure on essential
goods only involves a small part of consumers income.
Therefore, changes in income levels will not effect the
quantity demand for essential goods.
Misalnya, tanpa mengambil kira pengguna yang
kaya atau miskin, mereka tetap memerlukan
makanan yang merupakan barang terpenting
dalam kehidupan. Keadaan ini berlaku kerana
perbelanjaan terhadap barang mesti hanya
melibatkan sebahagian kecil daripada jumlah
pendapatan pengguna. Oleh itu, perubahan
pendapatan pengguna tidak akan membawa
kesan terhadap kuantiti diminta barang mesti.

2.6 CHANGES IN DEMAND CURVES

PERUBAHAN KELUK PERMINTAAN
Changes in Quantity Demand or Movement along a Demand Curve
Perubahan Kuantiti Diminta atau Pergerakan di Sepanjang
Satu Keluk Permintaan
Changes in quantity demand occur due to changes in the price of a

goods. When the price of a good increase, the quantity demand will
fall. This is known as contraction of demad. When the price falls, the
quantity demand will increase. This is known as expansion of demand.
o Perubahan kuantiti diminta berlaku disebabkan oleh
perubahan harga barang itu sendiri. Apabila harga naik,
kuantiti diminta akan berkurangan. Ini dikenali sebagai
pengucupan permintaan. Apabila harga jatuh, kuantiti diminta
akan meningkat. Ini dikenali sebagai pengembangan
permintaan.

 The changes in quantity demand

Figure 2.11 Changes in quantity

demand
Perubahan kuantiti di minta

cauced by the changes price of the

goods. An increases price will
caused
an decreased demand for the goods
and a deacresed price will caused
and increased demand for the
good. The changing quantity
demand
Caused by the changing price of a
good. Occurs on the same demand
curve.
o Perubahan kuantiti diminta
disebabkan oleh perubahan
barang itu sendiri. Kenaikan
harga menyebabkan
pengurangan kuantiti diminta
dan kejatuhan harga akan
meningkatkan kuantiti diminta
keatas barang tersebut.
Pengurangan dan peningkatan
kuantiti diminta akibat naik
turun harga berlaku
disepanjang keluk permintaan
yang sama.

Changes in Demand or Shapes in a Demand Curve

Perubahan Permintaan atau Peralihan Keluk
Permintaan
Changes in demand occur to

changes infactor other that the price

of the good. The demand curve will
shift to the right when demand
increase or to the left when demand
decreases.
Perubahan permintaan berlaku
disebabkan oleh perubahan
faktor selain harga barang itu
sendiri. Keluk permintaan akan
beralih ke kanan apabila
permintaan bertambah dan
sebaliknya.
If the demand curve shift to the

right, it is known as increase

demand. However, if the demand
curve shift to the left, it is known as
reduced demand.
Peralihan keluk permintaan ke
kanan dikenali sebagai
pertambahan permintaan dan
sebaliknya.

2.7 EXCEPTIONAL DEMAND CURVES

KELUK PERMINTAAN LEAR BIASA
According to the law of demand, price and quantity demand have an

inverse relationship, and the demand curve should slope downwords

from left to right. However, there are several expentions to the law
of demand, I.e. the quantity demand for a good changes inversely
with the price. This means that for the good with expentional
demand, the quantity demand will rise with an increse in price, and
the quantity demand will fall with a deacrease in price.
Mengikut hukum permintaan, harga dan kuantiti diminta

mempunyai hubungan sonsang dan keluk permintaan

mencerun ke bawah dari kiri ke kanan. Walaubagaimanapun,
terdapat beberapa kekecualian daripada hukum permintaan,
iaitu kuantiti barang diminta berubah secara langsung
dengan harga. Ini bermakna, dalam permintaan luar biasa,
kuantiti diminta akan berkurangan apabila harga jatuh.

2.13 Demand Curve That is Regresive in The Upper

Part
keluk permintaan agresif di bahagian atas

D
1
Z

Demand curve is
regresive in the
upper part
Normal demand
curve

Figure 2.14 Demand curve that is regressive in the

lower part
keluk permintaan regresif di bahagian bawah

d
1

z
d

Normal demand
curve
Demand curve
is regressive in
the lower part

Figure 2. 15 Effect Of Increase Compact Dics price on

Demand for cassttes
Kesan Kenaikan Harga Cekera Padat terhadap
Permintaan kaset

Figure 2.16 effect of deacreased ink price on

demand for pen
kesan kejatuhan harga dakwat terhadap
permintaan pen

Figure 2.17 effect of decreased demand for house on

demand for bricks
kesan pengurangan permintaan rumah terhadap
batu bata

THEORY OF SUPPLY
TEORI PENAWARAN
2.9 DEFINITION OF SUPPLY
DEFINISI PENAWARAN
Supply is defined as the quantity of a good that a

producted is able and willing to sell at a certain

price in a given period of time.
Penawaran didefinisikan sebagai jumlah

kuantiti sesuatu barang yang sanggup dan

mampu dijual oleh pengeluar pada tingkat
harga tertentu dalam satu jangka masa
tertentu.

FIGURE 2.18 SUPPLY CURVE

KELUK PENAWARAN

2.10 LAW OF SUPPLY

HUKUM PENAWARAN
The law of supply states that the higher the price of a good,

the greater is the quantity supplied, and vice versa.

mengikut hukum penawaran, semakin tinggi harga
sesuatu barang, semakin banyak kuantiti barang
tersebut yang akan ditawarkan dan sebaliknya,
semakin rendah barang tersebut, semakin sedikit
kuantiti barang tersebut yang akan ditawarkan.
Therefore, price and quantity supply have a positive

relationship. Thus, the supply curve slopes upwards from left

to right.
Selaras dengan hukum penawaran, harga dan kuantiti
barang ditawarkan mempunyai hubungan yang positif.
Oleh itu, penawaran mencerun ke atas kiri dan kanan.

2.11 SUPPLY FUNCTION

FUNSI PENAWARAN
QS = C + dp
Where,
Dimana,
Qs = quantity of good supplied
kuantiti barang yang di tawarkan
C = quantity of good supplied whan the price is zero.This value
interesects the
quqntity axis
kuantiti barang yang ditawarkan apabila harga adalah sifar.
Nilai ini
memotong paksi kuantiti.
+ = positive sign that indicates the relationship between price and the quantity supplied
Tanda positif yang menunjukan hubungan langsung antara
harga dengan
kuantiti yang ditawarkan.
D =price of good (RM)
harga barang (RM)

The supplied function is Qs =15 +3p.Calculate the

quqntity of good supplied at different price lavels by completing
attha following table.
Diberikan fungsi penawaran ialah Qs = + 15 3p.
Hitungkan kuantiti barang yang ditawarkan pada
c = 15, d jadual
=3
pelbagai tingkat harga daenag melengkapkan
di
P (RM)
Qs (unit)
bawah.
Pada P = RM1
1

18

24

21

27

Qs = 15 + 3 (1)
= 15 + 3
= 18 unit
Pada P = RM4
Qs =15 + RM 3 (4)
=15 + 12
=27 unit

2.12 types of supply

pembahagian penawaran
SUPPLY BY A FIRM
PENAWARAN FIRMA
Supply by a firm is the quantity of goods or services that a

producer is able and willing to produce or suuply at a certain

price in a given period
Penawaran firma ialah kuantiti barang atau

perkhimatan yang sanggup dan mampu dikeluarkan

atau ditawarkan oleh seseoarang pengeluar pada
tingkat harga tertentu dalam satu jangka masa
tertentu

Table 2.5 SUPPLY OF SHOES FOR THE NUBLAN ZAKI

FIRM
JADUAL PENAWARAN FIRMA BAGI NUBLAN ZAKI

POiNT

PRICE
(RM)
HARGA
(RM)

QUANTIT
Y
(PAIRS)
KUANTIT
I

15

1000

50

1500

25

2000
Figure 2.19 supply curve for supply by a firm
keluk pernawaran bagi firma

SUPPLY BY AN INDUSTRY
PENAWARAN INDUSTARI
Supply by an industry in the quantity of goods and

service that all firms in a industry or market is able

and willing to produce at a certain price in a given
period.
Penawaran industri ialah jumlah kuantiti barang

atau perkhimatan yang sanggup dan mampu

dikeluarkan oleh semua firma dalam sesuatu
industri atau pasaran pada tingkat harga
tertentu dalam jangka masa yang tertentu.

Table 2.7 INDUSTRY SUPPLY OF SHOES

JADUAL PENAWARAN FIRMA BAGI
INDUSTRI
PRICE ( RM)
HARGA (RM)

QUANTITY
SUPPLIED BY
FRIM A
(pairs)

QUANTITY
SUPPLIED BY
FRIM B (pairs)

INDUSTRY
SUPPLY
( Pairs)

15

1000

1200

2200

20

1500

1700

3200

25

2000

2200

4200

Figure 2.20 firm and industry supply curve

keluk firma dan industri

Firm A

Firm B

Industry

2.13 DETERMINANTS OF SUPPLY

FAKTOR YANG MEMPENGARUHI
PENAWARAN

Price Of Goods
Price Of Other Goods
Substitute goods
Complementary goods
Level of Technology
Production costs
Speculation
Government polices
Weather
Producers goals
Number of product

harga barang itu

Harga barang lain
Barang pengganti
Barang penggenap

Tingkat Teknologi
Kos pengeluaran
Ramalan jangka masa

hadapan
Dasar kerajaan
Cuaca
Matlamat pengeluar
Bilangan pengeluar

2.14 CHANGES IN SUPPLY CURVES

PERUBAHAN KELUK PENAWARAN
Changes in Quantity Supply or
Movement along a Supply Curve
Perubahan Kuantiti Ditawarkan
atau pergerakan di Sepanjang
Satu
Keluk Penawaran
Changes quantity supply or

movement along a supply curve

occurs due to the price of the goods.
Perubahan kuantiti ditawarkan
atau pergerakan di sepanjang
satu keluk penawaran berlaku
disebabkan oleh perubahan
harga barang itu sendiri.
Rajah 2.21 perubahan kuantiti ditawarkan

When the price of the goods rises, the quantity supply

will increase. This is known as expansion of supply.

However, when the price of the good fall, the quantity
supply will decrease.
Apabila harga naik, kuantiti ditawarkan akan

meningkat. Ini dikenali sebagai pengembangan

penawaran. Sebaliknya, apabila harga jatuh,
kuantiti ditawarkan akan berkurangan.

Changes in supply or shift

in a supply curve
Perubahan penawaran
atau
peralihan keluk
penawaran
Changes in supply occur when

the supply curve shifts to the

right or left due to changes in
factors other than the price of
the good itself.
Perubahan penawaran
berlaku apabila keluk
penawaran beralih kekanan
atau kekiri akibat perubahan
faktor-faktor selain harga
faktor barang itu sendiri.

Figure 2.22 changes in supply

 The supply curve will shift to be right whem the supply

increase and supply curve will be shift to the left when the
supply decrease.
Keluk penawaran beralih ke kanan apabila

penawaran bertambah manakala keluk penawaran ke

kiri apabila penawaran berkurang.

2.15 EXCEPTIONAL SUPPLY CURVES

KELUK PENAWARAN LUAR BIASA
According to the law of supply, price and quantity have a

direct relationship,and the supply curve slope upward from

left to right.However ,there are severalexceptions to the law
of supply,When price and quantity supply have an increase
when the price fall,and the quantity supply will decrease
when the price rises.
Mengikut hukum penawaran ,harga dan
kuantitiditawarkan mempunyai hubungan langsung,
dan keluk penawaran mencerun ke atas dari kiri ke
kanan.Walau bagaimanapun, terdapat beberapa
kekecualian iaitu kuantiti barang ditawarkan berubah
secara songsang dengan harga. Ini bermakna dalam
penawaran luar biasa kuantiti ditawarkan meningkat
apabila harga jatuh dan sebaliknya.

Supply Curves Regressive in The Upper Part

keluk Penawaran Regresif Di Bahagian Atas

Figure 2.23 exceptional supply curve relationship

between wages & supply of labour

2.16 TYPES OF SUPPLY

PENAWARAN YANG BERSANGKUT
(JENIS PENAWARAN)

Supply of car

Supply of petrol

Figure 2.24 effect of decreased price of car on the supply of petrol

Competitive Supply
Penawaran Bertanding

(a) Supply of Tea

(b) Supply Of Coffee

Figure 2.25 effect of decreased price of tea on the supply coffee

QUESTIONS
Section A : multiple choice questions
1. The definition of demand in

an economic perpective is
A the desire to purchase goods
and services at a certain price.
B the decrease all of
individual in a market purchase
goods
and services at a
certain price.
C the decrease of and
individual to obtain goods or
services supported by the ability
to pay a certain price.
D the ability of an individual to
spend his/her income to
purchase goods and
services.

2. The law of demand show

the relationship between
A
consumer income and
demand
B
population and
demand
C
demand and supply
D
price and demand

3. If the demand function for

4. The following table shows
a good changes from P =
the relationship between
10 0.2Q to P = 7 0.3Q
price and quantity demand
this, mean that
forPric
the good
X. Demand
Quantity
A

there is an increased
demand for the good.
B
there is a decreased
demand for the good.
C
there is an increased
supply
the good.
D
there is a decreased
supply
of the good.

A
B
C
D

e
(RM
)

(units)

50

40

30

Qd
Qd
Qd
Qd

=
=
=
=

10 5P
20 10P
10 20
120 10P

5. Of the following
factors,whichone willnot
shift the demand curve of a
good?
A
An increase in
population
B
An increase in the
price of
the good
C
An increase in notional
income
D
An increase in the
price of
subtitute good

6. Assuming other factors do

not change, an increase in
thebprice of cameras will
cause the demand the
demand curve for film to
A Remaind unchangged
B Shift to the left
C shift to the right
D become steeper

7. The demand curve for a

good will have a positif
slope if
A
The country
experiences an
economic upturn.
B
it is a prestitgious good
C
the price of the good is
expected to incred to
incerted to increase in the
future
D
the price of the goodis
expected to decrease in the
future

8. The supply of proton wira

cars will increase if
A
the demand for proton
saga
cars decrease
B
the government
reduce
taxes on Proton
Wira cars
C
the price of proton
wira falls.
D
local petroleum
resources are exhausted

9. Of the following, which

will not cause the supply
curve for a good to shift?
A
changes in technology
B
Changes in taxation
structure
C
changes in the price of
the good
D
changes in the prices
of
factors of production

10.An example of
complementary supply is
the supply of
A
leather and beef
B
chickens and ducks
C
pens and cars
D
tea and coffee

Section
B :the
Essay
Questions
1. Explain
law of
demand.
2. Expalin the five factors that influence demand.
3. Explain the different between the following concepts :
a)

Movement along the demand curve

b)

Shift in a demand curve

4. Why will a rasional consumer increase the quality demanded

of a good when the price of a good falls, and decrease the

quantity demand of a good when the price of good rises?
5. Explain the law of supply.
6. Explain five factors that influence supply.

Section C : Quantitative Questions

1. The table below shows the relationship between price,
quantity demand, and quantity supply
Price
(RM)

Quantity
demand (units)

Quantity
supply (units)

61

53

10

45

20

37

30

29

40

21

50

13

60

a) Determine the demand and supply function

b) Using graph paper, draw the demand supply curves
c) From the graph in b, what are the equilibrium price

and equilibrium quantity?

d) Assuming the price of substitute goods rise, the

quantity demand for the good will change by 20

units from each price levels, ceteries paribus.
i.

Draw the new demand curve on the same graph paper as

in (b).

ii.

What is the new equilibrium price as equilibrium quantity.

ANSWER
Section A

1. C
2. D
3. B
4. D
5. B
6. K
7. B
8. B
9. D
10.A

Section B
Question 1
Law of Demand
- When the price increase, the quantity demand will
decrease with the assumption of ceteris paribus.
- when the price decrease, the quantity demand will
increase with the assumption of ceteris paribus.
Question 2
Consumer taste
Consumer income
The price of other good
The price of good
speculation

Question 3
a)Movement along a demand curve
Changes in quantity demand due to change in the

price of the good.

When the price increase, the quantity demand will
increase.
When price decrease, quantity demand will increase.
b)Shift of a demand curve
Shift of ademand curve due to change in factor other

that the price of the good itself.

For example: when consumers income increase, the
quantity demand will increase too.

Question 4
When the price good decrease consumer will decrease the

quantity demand of the good because when the price fall, the
good will become cheaper. Consumer pushings power will
increase. With the same amount of the income, consumer can
purchase more good.
When the price of good increase,consumer will decrease the

quantity demand of good because when the price increase, the

good will become more expensive. Consumer pushing power
will decrease.
Question 5
When the price good increase, the quantity supplied will
increase with the assumption of ceteris paribus.
When the price of good decrease, the quantity supply will

decrease with the assumption of ceteris paribus.

Question 6
Five factors that include supply.
The price of the good itself.
Level of technology.
Production cost.
Government polices.
Number of product.
Section C

Refer to page 357

Rujuk m/s 357