Page | 1

THEMENo.5:THEDEMAND

I. INTRODUCTION

There are several criteria to define demand, according to experts in

marketing and economy, demand is a predominant factor in life
of companies, thus for Kolter, author of the book 'marketing management' (year
2002, p. 54), demand is "the desire one has for a certain
product, which is backed by a payment capacity.1

According to Laura Fisher, author of the book 'marketing', demand refers to

the quantities of a product that consumers are willing to
buy at the possible market prices2

Simón Andrade, author of the book 'Dictionary of Economics', provides the

next definition of demand: "It is the quantity of goods or services that the
buyer or consumer is willing to acquire at a given price and in a
established place, which can be used to partially or fully meet their
specific needs or may have access to its intrinsic utility.3

We can then define demand as: “The quantity of goods and/or

services that buyers or consumers are willing to acquire
to meet their needs or desires, who also have the
payment capacity to carry out the transaction at a set price and in
an established place

1Kolter
Philip (2003), Marketing Management, Mexico, Pearson Education.
2FisherLaura (1993), Marketing, Mexico, McGraw-Hill.
3Andrade Espinoza Simón, dictionary of economics, Lima, Andrade.
 Page |2

II. OBJECTIVES

a.GENERALOBJECTIVE

Demonstrating the demand function in the economic world through

from the description of its characteristics.

b.SPECIFICOBJECTIVES

Explain the definition of demand.

Understanding demand theory through the three
assumptions.
Describethedeterminantsofdemand.
Showthediferencebetweencurvemovementand
displacementofthecurve.
Conceptualizetheconsumer.

III. CONCEPTUALFRAMEWORK

a. BUYER

It is that person who buys, acquires, obtains, negotiates,

markets, trades, obtains, and deals in goods,
products and services in various payment methods, etymologically
It comes from the transitive verb 'to buy' and the suffix 'dor', which indicates the
what usually carries out the action.4

4Define (2019), Definition and etymologyhttps://definiciona.com/(Buyer)

 Page |3

b. COMPANY

An organizational unit that is dedicated to various activities, already

a commercial, industrial, or service type of sea with
profit purposes.5

c.EXPECTATION

It is known as expectation (a word derived from the Latin exspectātum,

which translates as 'looked' or 'seen' to hope, dream or illusion
to carry out or fulfill a specific purpose.6

d.MARKET

The market is the context in which exchanges take place.

products and services.That is to say, in that context is where
they carry out the offers, the demands, the purchases, and the sales.7

i. TYPES OF MARKET

MONOPOLY

The monopoly is a market structure where

there is a single provider of a certain good or service, it is
say, a single company dominates the entire market of
offer.

5Definition
(2019), Definition and etymologyhttps://definiciona.com/(Company)
6Definition
of (2018), Definition of. https://definicion.de.Expectation
7Economy Web Site (2007), Economia.wshttp://www.economia.ws/mercado.phpMarket
 Page | 4

When there is a monopoly in a market, there is only one

company capable of offering a product or service that does not

It has close substitutes.

In this way, consumers who wish to purchase the

well, they can only turn to the monopolist and must
accept the conditions it imposes. On the other hand,
a trade monopolyit is a situation where only
an organization controls all trade with another country
the geographical area.

2. OGOPOLIO

An oligopoly is a market structure where

there are few relevant competitors. Each one of
they have some capacity to influence the variables of the
market (such as equilibrium price and quantity).

In the oligopoly, competing companies havepower

of the market,but at a lower level than in the case of the

monopoly.Since there is not just one provider,

There is a small group of companies.

This means that while each of the companies has

influence on market price and quantity (not it
they take as given), the freedom to choose the level of
such variables are limited by the existence of others
competing companies. A special case of oligopoly
it is theduopolywhere there are only two bidders
in a market.
 Page |5

e. NEED

Need is a lack or scarcity of something that is considered

essential. This word is also used to mean
obligation.8

f. OFFER

More specifically, the supply is the amount of goods and services that
various organizations, institutions, people or companies are
ready to be put up for sale, that is, in the market, in a place
determined (a town, a region, a continent...) and at a price
given, well for the interest of the offeror or by the pure determination of the
economy.

Prices do not have to be the same for every type of product.

and even in the same product, two different sellers can
decide to set a different price.9

g.PRICE

In economics, the price is known as the amount of money that the

society must give in exchange for a good or service. It is also the amount
of money allocated to a product or service, or the sum of the values
that buyers exchange for the benefits of having or using or
enjoy a good or a service.10

8Economy Web Site (2007), Economia.wshttp://www.economia.ws/mercado.php(Market)

9Economipedia (2019), Economipedia: making economics easyInvalid input for translation.(Offer).

10Manage (2002), Manage,The URL provided does not contain any text to translate.Price
 Page |6

h.PRODUCT

A product is a thing or an object that is produced or manufactured, something.

material that is produced naturally or industrially through a

process, for the consumption or utility of individuals.11

i. RESOURCES

Resources are those elements that provide some type of

benefit to society.

IneconomyIt is called resources to thatfactorswhat combinations

are capable of generating value inthe productionof goods and services.
These, from a classical economic perspective, are capital, land and
work.12

j. SERVICE

A levelthe economicand in the field ofthe marketing,it is usually understood as

service to a set of tasks developed by a company to

satisfy the demands of their clients.13

k. SWAP

Barter is known as the exchange of goods and services for others.

goods and services without using money to complete the
transaction.14

11 Meanings (2013), Meanings: discover what it means, concepts and definitions.

The provided text does not contain translatable content.(Product)
12Definition ABC, Definition ABC: You dictionary fact easy
Unable to access the provided link.(Resources).
13Definition of (2018), Definition of. https://definition.com.(Service).
14Definition of (2018), Definition ofhttps://definicion.de.exchange
 Page | 7

l. UTILITY

Utility is the measure of satisfaction by which individuals

they value the selection of certain goods or services in terms
economic.

Goods and services have certain properties that satisfy

human needs and that have a positive impact on their
buyers or consumers.15

m. SELLER

A seller is called a person who has thetaskto offer and

to market a product or service in exchange for money; for this
must use a series ofstrategiesof persuasion, that allows them
convince the buyers and thus achieve the goal.16

15Economipedia (2019), Economipedia: making economics easyhttps://economipedia.com/(utility).

16Concept, Definition (2011), concept definition,Unable to access external links.
 Page | 8

IV. THEORETICAL FRAMEWORK

a. DEFINITION OF DEMAND

The quantity of goods and/or services that buyers or

consumers are willing to purchase to satisfy their
needs or wants, who also have the ability to pay
to carry out the transaction at a set price and in a location
established17

b. COMPONENTS OF DEMAND

i. PRODUCTION

Process through which goods and services are created

economic. It is the activity of any economic system
that is precisely organized to produce, distribute and
consume the goods and services necessary for satisfaction
of human needs.

Any process through which an object, whether natural or with

some degree of elaboration transforms into a useful product
for consumption or to initiate another productive process, the
production is carried out by human work activity and with
the help of certain elements that have a greater or
less perfection from a technical point of view.

17EnríquezPlacencia (2013), definition of demand,

The provided text is a URL and does not contain translatable content.
 Page |9

c. THE THREE ASSUMPTIONS

i. PERFECT COMPETITION

Perfect competition in a market means that none

the agents can influence the price of the good or service, it is
say, both sellers and buyers are price-
acceptors.18

CONDITIONS FOR IT TO OCCUR

PERFECT COMPETITION

HOMOGENEOUS PRODUCT

It demands the need for there to be a product

homogeneous y little differentiable for
competitors. Participants will be able to take their
decision to produce or acquire a company that
desire.

We would be talking, therefore, about a market

perfectly competitive about that in which
buyers and sellers have no limit to
their decisions.

Consequently, they have the power to offer their

production at the price they choose or to buy it
also to others at the price they prefer.19

18
Economipedia (2019), Economipedia: making economics easyhttps://economipedia.com/competition
perfect.
19
Economipedia (2019), Economipedia: making economics easy,The provided text is a URL and cannot be translated.product
homogeneous)
 Page |10

PERFECT INFORMATION

For a homogeneous product to exist, it is vital

that the information about prices and products is
perfect, in other words the information must
be transparent and clear.

In addition, the transaction costs and costs of

resource mobility is insignificant. The
consumers can access any
producer.20

2. NORMAL GOOD

A normal good is any type of good or service in

that demand increases as prices rise
income. It is a term used ineconomyfor
study the differenttypes of goods.Most of the
Goods and services belong to this category. The other
What type of goods are inferior goods.21

20
Economipedia (2019), Economipedia: making economics easy,Invalid input: URL provided instead of text for translation.(information
perfect.

21Economipedia (2019), Economipedia: making economics easy, https://economipedia.com/(perfectly normal)

 Page | 11

CHARACTERISTICS DE THE GOODS

NORMAL

In economics, normal goods are

are characterized by the positive variation that occurs in the

demand for these products as it increases

consumer rent.

oAn increase in people's income

provokes an increase in the quantity
demand for the normal good, that is, the
increase in people's income
it has the effect of aelasticityrent
positive, the larger the budget
of an older person is the consumption of
a normal good.

oAn increase in the price of goods

normal, has a negative effect on
the demand, that is, when the price rises of
a normal good, consumers
they will reduce the consumption of that good.

Therefore, the curve of this

demand will always be negative or null, in
case of normal goods with
perfect elasticity.22

22Economipedia (2019), Economipedia: making economics easycharacteristics

of the normal good)
 Page | 12

TYPE OF NORMAL GOODS

oGoods of first need:

Its demand is growing at a slower pace
to the one who makes the income of the

consumers. For example, the bread, the

milk, eggs, etc.

oLuxury or superior goods:Your demand

increases faster than it
make the income of consumers.

It mainly occurs in leisure services,

clothing, meat, fish, etc.23.

3. CONSUMIDOR

According to Philip Kotler (2008) "The consumer is a

a person who satisfies one of their needs
using it until the end and destroying a product or
in a good one.”, we can also use the
definition of Kolter and Armstrong (2008) "The consumer"
use the information to arrive at a series of opinions
brand finals.24

23Economipedia (2019), Economipedia: making economics easy,URL provided is not translatable text.(types of goods)
SSlideshare (2019), Slideshare,The provided text seems to be a URL and not translatable content.
24

user-mixed-map.
 Page |13

characteristics

Consumers are more reasonable and

suspicious.

Meditate more on the purchase and use for example,

internet to inform and compare, in

search for a better quality/price ratio.

This price quality is becoming more expensive every time.

importance, especially regarding

to durability: there is a rejection of the
scheduled absorbent call and it
he/she believes that products should last
much more than they last. 25

THE TYPE OF CONSUMERS

CONSUMER PERSONAL: it is the one who

buy or consume goods or services

in order to satisfy desires or
need for oneself.

25Sslideshare(2019), Slideshare,Unable to access external content.

mixed-user-map.
 Page | 14

ORGANIZATIONAL CONSUMER: the

what to buy for an entire organization,
how are institutions or companies.26

d. MARKET DEFINITION

According to Aspers, Patrik (2011) 'Ineconomya market is a

set oftransactionsof processes or exchange of goods or
servicesbetween individuals. The market does not make direct reference to
profitor at thecompaniesbut simply to the mutual agreement in the
framework of transactions. These can involve participants from
individualscompanys, cooperatives,among others. The market contains
users in search of insufficient resources in relation to the
unlimited needs.

e. TYPES OF MARKET

International Market: It is one that is located in one or more

countries abroad.

National Market: It is one that covers the entire national territory

for the exchange of goods and services.

Regional Market: It is a specific geographic area

freely, which does not necessarily coincide with the limits
politicians.

Wholesale Commercial Exchange Market: It is one that

develop in areas where companies work wholesale
inside a city.

26Sslideshare(2019), Slideshare,
mixed user map.
 Page |15

Metropolitan Market: It is an area inside and around

a relatively large city.

Local Market: It takes place in an established store.

or in modern shopping centers within an area
subway.

f. DETERMINANTS OF DEMAND

The demand is subject to the quantities of a product that the

consumers would be willing to buy at the possible prices of
market. Leading this situation to four determinants:

A).-TASTES Y PREFERENCES OF THE

CONSUMERS.- There is a direct relationship between the
tastes and preferences in demand; that is to say, if the
tastes and preferences for the product vary in favor of the
product, demand changes and vice versa.

Tastes and preferences are conditioned by the

custom, habit, and culture. The total demand for
cigarettes increased when women started to
smoke.

B).-NUMBER OF CONSUMERS.-There must be a

relationship between the number of consumers and demand;
That is to say, as the population increases, demand increases.

Every human being born is a potential consumer.

 Page | 16

C).-CONSUMER INCOME.-The
movement of consumer income causes a
direct relationship between product demand. A
an increase in income leads to an increase in demand
and vice versa.

D).-POPULATION: As the population increases, it is

waiting for the demand for a good to increase since
there are more consumers with the same
need.27

g. EFFECTIVE DEMAND

Thedemandeffective is the quantity of one or several products that the

consumers can and want to acquire. This, to apricegiven in a
specific moment.

i. CHARACTERISTICS OF EFFECTIVE DEMAND

It depends as much on desire as on capability

budget constraintand the consumers.

2. The effective demand of a country is equal to itsdemand

added(DA) what is the sum of all goods and
services produced in a given period.

27Unable to access external URLs or content.

 Page | 17

From another perspective, the DA is the sum ofthe goods

first order,investment goodsyexports
exports minus imports of a
nation.

3. The concept of aggregate demand was developed by

the recognizedJohn Maynard Keynes.

4. The effective demand for a good can be

less than the amount produced by the supplier. In that
case, there will be a surplus that will cause the producer
modify your projections for the next period.28

h. THE LAW OF DEMAND

The law of demand reflects the relationship between thedemandwhat exists of

a good in the market and the quantity of it that is offered based on

at the price that is established. Generally, this relationship between price and
quantity is inversely proportional.

His study allows to easily deduce the amounts of the

products that are accessible to consumers in a market at
various price levels.

There are also other conditioning variables of demand, such as

the income, the preferences or behaviors of individuals, the trends and the
existence of substitute or complementary goods.

28Economipedia (2019), Economipedia: making economics easy, https://economipedia.com/(demand

effective and characteristics
 Page |18

The quantity demanded is typically represented as a

dependent variable of the price, but, in fact, it depends on income
of individuals, the prices of other goods, and other factors
various.29

i. LAW OF DEMAND AND CHANGE OF DEMAND

The law of demand states that, holding everything else constant

constant, the quantity demanded of a good increases when its
price drops and decreases when the price increases.

This is represented as a movement along the curve of the

demand, given that the price of the product is on the vertical axis.

The demand for goods changes as a result of changes in the

income, tastes, etc. Since these factors are not on the axes of
the demand curve, such changes are reflected as a
displacement of the curve to a new location.

A shift in the demand curve is usually referred to as

as a change in demand, unlike a movement along the
length of a fixed curve, which is called change in quantity
defendant.30

29Economipedia (2019), Economipedia: making economics easyhttps://economipedia.com/(law of the

demand)
30Wikipedia, the free encyclopedia,Law of Demand
 Page |19

j. DEMAND CURVE

The demand curve is aconstructoruseful for predicting the effect

possible or probable of certain economic situations in consumption
frequent of goods.

The demand curve is often referred to as an object.

actually existing, although in reality it is an abstract object whose
existence is derived from concrete mathematical assumptions that sometimes
they are only approximately fulfilled.

Moreover, the demand curve and its properties depend on the fact that the
consumers exhibit perfect rationality, the goods are
infinitely divisible and another series of assumptions that have been
criticized.

However, even with the limitations that may be imposed by the

previous abstractions, the demand curve is a theoretical construct
useful for understanding the qualitative behavior of markets, and
in many cases it is an empirically adequate description.

i. VARIATIONS IN THE DEMAND CURVE

The shift in the demand curve occurs when

there is a change in any determinant of demand that
nor the price, giving rise to a new demand curve.

Therefore, the changes that could vary the amount

consumed despite the price of the good remaining unchanged
changes. Some of the factors could be the emergence or
disappearance of substitute products, variations in the
consumer incomes and expectations.
 Page |20

ii. FACTORS THAT DETERMINE DEMAND

It is worth remembering that the factors that determine demand

of a good are its price, the price of the others
goods, the personal income of the consumer and also the
preferences or tastes of individuals.

Movements along the demand curve

express the variation in the quantity demanded due to the effect of the

price, assuming that the other factors remain constant

constants.

iii. SHIFT OF THE DEMAND CURVE

The shifts of the demand curve can

due to:

The increase in the population demanding the good.

Changes in future price outlooks.
Changes in the preferences of the
consumers.
The increase in disposable income for some
consumers.
if the demand for a
well determined P independently of the rest,
the alteration of the price of any of the others
goods can be translated into a displacement
of the good P
 Page |21

iv. THE DEMAND CURVE AND EQUILIBRIUM

For the equilibrium point between supply and demand to be

unique, there are several characteristics that the curve must fulfill
demand:

Decreasing - Requires elasticityregarding the

that
price is negative for the entire domain of the
function.

Continuity - Depends on the infinite divisibility of

good.

Derivability - Depends on the structure of the

indifference curves.

Complete Preferences - tEhe consumeryou have to

to know which of the following cases applies to you: X>Y or

X<Y or X~Y. It means that one prefers.

X prefers Y, or it doesn’t matter to them between those options.

Consumer rationality - If the consumer

prefers X over Y, and prefers Y over Z, must prefer X over Z
Z.
 Page |22

v. CHARACTERISTICS OF THE DEMAND CURVE

The demand curve is drawn with price on the vertical axis and the
amount on the horizontal axis and is decreasing from left to
right, that is to say, it has a negative association, with a higher price
smaller amount and vice versa.

This negative slope is commonly referred to as the law of the

demand, which means that consumers will buy
more than one service, product, or resource as the price decreases.31

k. MOVEMENT OF THE LAW OF DEMAND

The demand curve represents the relationship that exists between the
prices and the quantities demanded. When prices are
high, the quantities demanded are low and if the prices
the quantity demanded will increase.

If the price changes, a change in quantity can be expected.

demanded, which can be analyzed as a movement along
the demand curve, when some of these factors change
different from the price, the quantity demanded for each possible price
It also changes, the graphic result is a shift of the curve
of the demand.32

31Wikipedia, Wikipedia the free encyclopedia,Unable to access external content. Please provide the text you'd like translated.
32Wikipedia, Wikipedia the free encyclopedia,Law of Demand
 Page | 23

MOVEMENT ALONG THE CURVE

Demand is not static, and it does not remain unchanged over time if
not that it varies based on some external factors to the equation, because
how the demand curve can be graphically shifted
depending on changes in other related factors.

Graphically indicate the level of demand that is static.

obtains for each price, however the displacements can be
due to the following circumstances, resulting in a new price of
equilibrium and a new graphic curve that represent levels of demand
different for the same price:

Increases in the number of demanders of the good

Changes in future price outlooks
Changes in consumer tastes
The increase in income among consumers
Changes in the prices of substitute goods33

m. SHIFTING OF THE CURVE

The shape of the demand curve for all goods and services
normal is always decreasing as a consequence of the law
it is universal that at lower prices consumers will demand
larger quantity of the product.

33Economipedia (2019), Economipedia: making economics easyhttps://economipedia.com/(law of the

demand)
 Page | 24

It is also normal for them to have a convex curvature towards the

origin for reasons that we will see later, when studying the
elasticity of demand. The 'curve' of demand that we represent
In the attached interactive graph, it is a straight line, to simplify.34

V. METHODOLOGY

In this work, qualitative research was used, according to Licon and

Denzin (1994) 'Qualitative research is an intradisciplinary field,
transdisciplinary, and often contradictory, permeates the
humanities, social sciences, and physical sciences.

The qualitative methodology proposes an approach more related to the

the 'meaning' of the action, seeking what Weber would call the verstehen, the
understanding the meaning it possesses, being the search for this the end of it
type of research. (Rodríguez, Gil and García 1996:10).35

In the words of Rodríguez, Gil, and García: “this means that researchers
Qualitative studies examine reality in its natural context, as it happens,
trying to make sense of, or interpret, the phenomena according to the
meanings that the involved people have" (Rodríguez, Gil García,
1996:10).

Thus in this study the emphasis is placed on trying to capture the meaning of
the acts as they are understood, according to the actors and explained by the
themselves, validating not by the number of cases but by representativeness
from the speeches of the actors (and therefore by their meaning) about the phenomenon
in question.

34
Emudet. Emudet, virtual encyclopedia,Unable to access external content.(displacement
of the curve)
35
Rodríguez, Gil and García 1996:10
 Page | 25

To complement the previous definition, I can refer to Taylor and Bodgan.

(1986) refers to qualitative research as "that which
produce descriptive data: the people's own words, spoken
written and observable behavior.36

VI. DEVELOPMENT OF THE TOPIC (THEORETICAL FRAMEWORK)

The task of measuring demand is filled with specific terms, many

of them redundant. For example, one can talk about eight 'states'
different types of demand: negative demand, existing demand, demand
latent, declining demand, irregular demand, complete demand, over-
demand and undesirable demand (Kotler and Keller, 2006, 10).

However, the most important concepts for measuring demand

they are the market demand and the company's demand, having in
always keep in mind that in each of them one can talk about a forecast
and a potential.37

The market demand for a product is the total volume likely to

to be purchased by a specific group of consumers, in an area
concrete geographical, for a specific period of time, in an environment
defined by marketing and under a specific marketing program (Kotler and
Keller, 2006, 127).

For its part, the company's demand would be defined by the quota.
estimated about market demand based on different degrees of
marketing effort at a given moment (Kotler and Keller, 2006)
129).38

36Taylor and Bogan (1986)

37
(Kotler and Keller, 2006, 10).
38
(Kotler and Keller, 2006, 127).
 Page |26

A first approximation to the definition tells us that the demand for

The market for a product is the total volume that a certain buyer would purchase.

group of clients in a given period and geographic area, given the

marketing programs and the corresponding environment during the period
considered (Kinnear and Taylor, 2000, 715).39

On the other hand, measurement involves the development of a quantitative estimate.

of the demand, which can be measured based on four dimensions, according to
Kinnear and Taylor (2000, 714): product, geographic location, period and
client, calculating 180 measurements of the potential demand and a
forecast situation.

The term market potential refers to the upper limit of demand.

in the market; while the market forecast specifies the level
expected demand for a certain period (Kinnear and Taylor,
2000, 715 -716).40

From the perspective of other authors (Diez de Castro and Landa, 1994, 70),
studying demand necessarily means: measuring it, whether in units
physical or monetary; explain what variables, specific to the market, of
microenvironment and macroenvironment affect it; and estimate what is the
trend that is expected from it in the future.

Unlike Kinnear and Taylor (2000), it is stated that the study can
involve the consideration of three different dimensions: the dimension
product, time and the groups of buyers; although the demand also
it manifests at different levels in the exchange relationship process
as: final demand and derived demand.

39
(Kinnear and Taylor, 2000, 715).
40(Kinnear and Taylor, 2000, 715 -716).
 Page |27

In this same line, Kotler and Keller (2006, 127) establish that there are 90
different classes of demand estimates or measurements,
considering three levels or dimensions: product level (six), levels
spatial levels (five) and temporal levels (three).

This approach is the one that has somehow prevailed in the actions of the
marketing over the past few years, but in practice it seems not to
be sufficiently useful.41

VII. CONCLUSIONS

GENERAL OBJECTIVE CONCLUSION

The market is key for any investment made with the intention of
generate income and profits. The measure of demand for a product or
the service will be the number of people who purchase or use it.
No project aimed at generating revenue can be sustained
himself if he fails to meet the demands of the market.

This means that when a product is created or a service is provided and

If it is placed on the market, the product must meet the characteristics.
what users are looking for, in terms of volume, price, packaging, quality,
and seasonal offer, among other factors.

If this is achieved, the product or service is sold and the money generated is
used to continue with the operations and to cover the costs of the
investment.

41Kotler and Keller (2006, 127)

 Page |28

Then the function of demand in the economic world is to maintain the

commerce in time and space, to improve people's lives
through the satisfaction of needs, generation of products and
jobs, and above all as a driver of the economy.

a. FIRST CONCLUSION

In the research work, we set the following objective:

What was: “Explain the definition of demand,” to which afterwards
conducting the research we arrived at the answer to explain the
demand in the following manner:

Demand is the quantity of goods and/or services that the

buyers or consumers are willing to acquire for
satisfy their needs or desires, who also have the
payment capacity to carry out the transaction at a determined price
and in a designated place

b. SECOND CONCLUSION

In this research work, we also present the

next objective: "Understand the theory of demand through
the three assumptions”, therefore we will understand the three principles
understanding that it is made up of.

PERFECT COMPETITION: Competition

perfect competition in a market means that none of the
agents can influence the price of the good or service, it is
to say, both sellers and buyers are
price-accepting.
 Page | 29

NORMAL GOOD: A normal good is any type of

good or service in which demand increases as
that increase revenues. It is a term used in
economyto study the differenttypes of goods.
most goods and services belong to this
category. The other type of goods are the goods
inferior.

TYPE OF NORMAL GOODS

o Goods of first need:

Its demand is growing at a slower pace.
to the one who makes the income of the

consumers. For example, bread,

milk, eggs, etc.

oLuxury or superior goods:Your demand

increases faster than it
it makes the consumers' income.

This occurs primarily in leisure services,

the clothes, the meat, the fish, etc.42.

42Economipedia (2019), Economipedia: making economics easy,Invalid input. Please provide text for translation.(types of goods)
 Page | 30

CONSUMER: According to Philip Kotler (2008) "The

consumer is a person who satisfies one of their

needs using them until their end and destroying
a product or a good." Furthermore, we can also
using the definition of Kotler and Armstrong (2008) "The
consumer uses the information to arrive at a series of
final opinions of the brand.

So we can understand the three assumptions as 'everything is fine or

service that satisfies a consumer's need through the
setting a price that may vary depending on the company that
produce a product or offers a good.

c. THIRD CONCLUSION

For a better understanding of the topic, the group also raised the
next objective 'Describe the determinants of demand', this
the objective can be answered in the following way, so that it
to generate a demand, the following aspects must be taken into account:

A).-TASTES Y PREFERENCES OF THE

CONSUMERS.-There is a direct relationship between the
tastes and preferences in demand; that is, if the
tastes and preferences for the product vary in favor of the
product, demand changes and vice versa.

Tastes and preferences are conditioned by the

custom, habit, and culture. The total demand for
cigarettes increased when women started to
to smoke.
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B).-NUMBER OF CONSUMERS.-There must be a

relationship between the number of consumers and demand;
That is, as the population increases, demand increases.
Every human being born is a potential consumer.

C).-CONSUMERS' INCOME.-The
the movement of consumer income causes a
direct relationship between product demand. A
an increase in income leads to an increase in demand
and vice versa.

D).-POPULATION: As the population increases, it is

wait for the demand for a good to increase since
there is a greater number of consumers with the same
necessity.

d. FOURTH CONCLUSION

Adding one more objective, "Show the difference between movement"

of the curve and displacement of the curve, this objective can be
shown as:

While the movement is in charge of showing us the

creation of demand through external factors, the
displacement is responsible for showing us the elasticity of the
demand means that it will determine that the lower the
the higher the price of a product, the higher the demand.
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e. FIFTH CONCLUSION

Before finalizing the research, the group proposed one more objective.
which is: "Conceptualize the consumer", then the group can
respond to that as:

According to Philip Kotler (2008), 'The consumer is a person who

satisfies one of its needs using it to its end and
destroying a product or an asset." In addition, we can also
use the definition of Kotler and Armstrong (2008) 'The consumer'
use the information to arrive at a series of final opinions on
the brand.

VIII. RECOMMENDATIONS

It is very important to know how to differentiate between demand and supply, since

they are usually confused, that's why we recommend that the

people accessing this research should consider the following points:

The supply is the amount of goods or services that a producer

is willing to sell at a certain price.
The demand is the amount of goods or products that a
the consumer is willing to acquire in the market.
Both concepts are graphed as curves. There is a point in
which balance each other, indicating an equilibrium in the market.