When household income increases, such as harvesting of agricultural products increases, salaries increased, consequently the family requests to purchase goods and services will rise. Surely the desire to purchase goods that correspond to the ability of income to buy what fits and if really needed.

Definition of the demand of a quantity of goods and services would be purchased or required by the consumer society at the level of price, time, and certain markets. While offering a number of items offered or sold by the producer to the consumer.

An explanation of the laws of supply and demand law is as follows:
a. If demand for certain goods and services increases while the number of items remain, then the price will go up.
b. If the demand for goods and services decreased, while the number of items remain, then the price will go down.
c. If the supply of goods and services multiply while the demand remains, then there is a possibility prices will fall.
d. If the supply of goods and services decreased, while the demand remains, then there is the possibility that prices will rise.

Of course the law of demand and supply law that could apply when other factors are fixed and unchanging, for example:
a. Public taste has not changed.
b. Goods and services as requested buyers and sellers that offered no replacement or nothing like it (substitutes).

Therefore, in economic terms is known ceteris paribus, which means economic interaction is always influenced by the circumstances prevailing in that area. Not an absolute economic rules, as well as with the formulation of other social sciences, influenced by the state of society, the desire of its people, government regulation and other social conditions.

The goal of human action in the case of consumption of goods and services is to meet the needs of everyday life. To obtain goods and services necessary sacrifice in the form of a price to pay. The amount of goods and services who wish and are able to be purchased by consumers at various price levels at certain time called the demand.

The law of demand states that the lower the price of an item, the more quantity demanded. Conversely, the higher the price an item, the fewer number of items requested. The law of demand applies ceteris paribus, a condition which suggests that other factors that influence is considered fixed or not changed at all. From the law of demand, it is clear that when the price of a good falls, people tend to buy in greater numbers. Meanwhile, if the price of a good rises, then the buying public interest will go down.

Demand curve is a curve that describes the relationship between price and quantity demanded. To illustrate the demand curve, price is considered as the dominant factor, while other factors will be considered fixed or unchanging or constant (ceteris paribus). The law of demand states when prices rise, quantity demanded will fall and if the price falls, quantity demanded will rise. Based on the above laws, can be described or graph the demand curve.

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a. consumption motives for prestige or self-esteem
usually goods that are consumed have a high price (conspicuous consumption). Why is it done? Because there is a pleasure to feel alone when making expensive purchases, such as diamonds.

b. expectations of future price changes
good wishes mean optimistic and pessimistic on the contrary means, if one is optimistic it will be more goods are demanded from a previous state and vice versa, this means there is an element of speculation.

c. price-quality relationship
if high prices are assumed to be better quality than cheaper then the law of demand does not apply.

d. existence of inferior goods
Inferior goods are goods whose demand is much less when the price drops. Inferior goods demand curve for the market demand is always negative while for individual demand was positive for inferior goods between individual belief that one is different from other individuals.

The law of demand only consider the functional relationship (the interplay of influence) between the amount of goods demanded by price alone, while the other factors that influence the amount of goods demanded in addition to price are considered remains unchanged (this requirement is referred to as the ceteris paribus).

Close relationship between price and quantity of goods demanded delivery understanding the law of demand, which reads: “The amount of goods demanded is always inversely proportional to the price. “

The law of demand applies where other factors besides price are ceteris paribus. As for other factors that form the ceteris paribus condition is primarily:
1. Income levels of consumers.
2. number of consumers in the market.
3. consumer tastes or preferences.
4. prices of goods other related issues.
5. consumer views on expectations relating to prices and future earnings.
6. usefulness of goods.
7. purchase motive was not based on prestige / self-esteem.

So the force of the law of demand is not absolute as in the physical sciences but only a tendency, ie a tendency to want to move on but not yet ascertained the truth.

As in the law of demand, then the law of supply also only consider the functional relationship between the amount of goods offered with price, while the other factors that influence the amount of goods offered in addition to price are considered remain unchanged (ceteris paribus).

Close relationship between price and quantity of goods offered gave birth to the understanding of the law of supply, which reads: “The number of goods on offer is always directly proportional to the price.” That is if the price of goods rises, the total supply of goods will also rise, if the price of goods down the number of goods offered will also fall.

The law of supply apply if other factors besides price are ceteris paribus. As for other factors that form the ceteris paribus condition is primarily:
1. production techniques
2. number of producers
3. producer’s / seller’s view or estimate related to the prices of goods at a later date
4. prices of inputs or resources
5. the price of other goods related
6. Government policy
7. financial condition (producer / seller is not desperate for cash)
8. producer / seller have adequate warehousing facilities