In this artice, you’ll learn about What is Demand Schedule? Definition, Example, Graph, Types and more.
What is Demand Schedule?
A demand schedule is a tabular representation that shows the relationship between the price of a good or service and the quantity demanded at different price levels, assuming all other factors (ceteris paribus) remain constant. In simpler terms, it’s a table that lists the different quantities of a product that consumers are willing and able to buy at various possible prices.
Demand Schedule Definition
A demand schedule is a table that shows the quantity of a good or service that consumers are willing and able to buy at different prices at a particular point in time, assuming all other factors (ceteris paribus) remain constant.
Types of Demand Schedule
There are two main types of demand schedules:
- Individual demand schedule: This shows the quantity of a good or service that a single consumer is willing and able to buy at different prices.
- Market demand schedule: This shows the total quantity of a good or service that all consumers in a market are willing and able to buy at different prices. It is obtained by summing up the individual demand schedules of all consumers in the market.
Demand Schedule Example
Here’s a simple example of a demand schedule for a hypothetical product:
| Price | Quantity Demanded |
|---|---|
| $10 | 100 |
| $9 | 120 |
| $8 | 140 |
| $7 | 160 |
| $6 | 180 |
This demand schedule shows that as the price of the product decreases, the quantity demanded increases. For instance, at a price of $10, consumers are willing to buy 100 units, but at a price of $6, they are willing to buy 180 units.
Key points to remember:
- A demand schedule is a static representation, meaning it shows the relationship between price and quantity demanded at a specific point in time.
- The law of demand is reflected in a downward-sloping demand schedule, indicating an inverse relationship between price and quantity demanded.
- Demand schedules are essential tools for understanding consumer behavior and analyzing market trends.