Getting to know the legal requests and offers in detail

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Getting to know the legal requests and offers in detail

Getting to know the legal requests and offers in detail

Getting to know the legal requests and offers in detail

Understanding of legal requests and offers

Law requests and offers are the theories that explain the interaction or transaction between sellers who sell a goods and buyers who want the item. This theory is made to define the effect of desire for a particular product or goods to the selling price of the product.

This law is one of the basic laws in the world of the economy. In real life demand and offers are two opposite things until later the market will find a balanced price. Demand or offers can increase or decrease, this can occur because there are many factors.

Basic law requests and offers

The two things were based on four laws. These laws are used as the foundation of this theory. These laws can be used as a reference by economic actors to run their business. Because in these laws there are things that will happen if something happens.

So business people can find out from these laws. To find out more next is the discussion of the basic legal bid in various circumstances:

  • When the offer increases: if the offer on an item increases, the price offered will be higher.
  • When the offer decreases: if the offer on an item decreases, the price offered will be lower.
  • When demand increases: if the price of a product is low, the number of products requested will increase.
  • When the request decreases: if the price of a product rises, the number of products requested will decrease.

That was the basic laws for demand law and supply. It can be seen if the sound between the law of demand and supply law is very inversely proportional. Indeed this is what is needed to achieve a price balance.

Requests and offers to achieve price balance

Above previously discussed that these two things greatly affect the balance of prices on the market. Maybe some people don’t understand the meaning of the balance of the price itself.

The price balance is when the manufacturer can sell all the products from its production and buyers can buy all the products of the production as they wish. At some point the inventory of goods on the market remains.

The seller cannot add prices or costs that have been determined by the market seen from the request of consumers at that time. However, producers can reduce or increase the number of items they supply to the market based on the prices they have set.

Actually it’s okay if the seller wants to increase the price of the goods exceed the price set by the market. However, this will have a negative impact on the merchant.

There will be no price balance, because there is no consumer who wants to buy it, especially the price is different from the market. So the traders are threatened with losing the competitors who can cause bankruptcy.

Things that can affect balance prices

The price balance on the market can be high or low depending on several things. Things that can affect the balance of prices in the market, namely taxes and subsidies. The tax imposed on a product causes the selling price of the product to be high. The manufacturer does not want to bother and burden consumers with the tax burden.

As a result the balance on the market becomes higher. Then there are subsidies which are opposed to taxes. Subsidies given to a product cause the selling price of the product to fall or lower. As a result, the price of balance in the market becomes down or lower.

Factors that influence requests and offers

There are factors that can affect down or rising demand and offers. Factors that can affect requests, namely the price of a product, choice of consumers, and the number of replacement products available. Examples are when the price of a skincare and make up is down, then the demand for skincare and make up increases.

Factors that influence the offer are divided into two namely the main factors and supporting factors. For the main factor consisting of capacity or the ability to produce, raw materials and labor included in production costs, and the latter is the number of competitors who have a direct effect.

Supporting factors are inventory of raw materials, weather, and extent of supply networks. That was the factors that very influential on demand and supply. These factors are like the basis of legal supply and demand.

Request and Offer Function

The request function is a data or mathematical study that is useful for analyzing consumer prices and behavior. The function request follows the law of demand, namely if the price of a product is low, the number of products requested will increase and vice versa.

So the relationship between price and request is a relationship that is contrary or reversed. The offer function is the equation or relationship between the number of items that manufacturers offer at the price of goods on the market.

This offer also functions to follow the bid legal, if the offer on an item increases, the price offered will be higher and vice versa. The function of this offer is commonly used by producers to think of many items or products to be produced.

If in the request function the relationship between the price and demand is an opposite relationship, different from the supply function. Because in the item offer function offered and the number of items has a corresponding or positive relationship.

Examples of legal offers and demand in everyday life

If there was a cake shop that sells a very delicious brownies cake, so many people want it and invade the cake shop. But suddenly the price of the brownies cake has doubled because the owner feels there will still be someone who buys his product.

This is very incorrect, brownies that are sold to sell will be wasted in vain. Because consumers will think twice before buying it especially at a high price. That was an example of a request law.

An example of a bidding law is when the brownies are not sold, the owner finally decides to reduce the price. But the owner will only sell it a little to maintain supplies suppliers. It is very relevant to show the relationship between the number of offers and prices directly.


That was the discussion on complete and detailed legal requests and offers. Starting from understanding to an example of these two things have been explained above. Offers and demand are basic in the economy.

So it is expected that more and more people understand the two things, so not only for people in the economy alone but for everyone.

Law requests and purchases are related to sales and price requests offered. Usually this is a common thing for business owners in everyday life.

If you have a business, this discussion is perfect for expanding your knowledge and can be applied in your business so that it is not wrong to set the price balance.

Every effort must require good and fast stock management. Because stock is the most valuable asset for the company. If your company has developed well you will definitely better manage stocks according to customer orders.

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