Tutorial Topic: What is Demand Schedule, definition, two types: Individual & market demand schedule, and example of a demand schedule.
Table of Contents
Demand Schedule Definition
In economics, a demand schedule is a tabular representation of different quantities of commodities that consumers are willing to purchase at a specific price and time while other factors are constant.
Two Types of Demand Schedule
The demand schedule is of two types:
- Individual Demand Schedule
- Market Demand Schedule
Individual demand schedule
Individual demand schedule definition: It is a tabular representation of quantities of a commodity demanded by an individual at a particular price and time, provided all other factors remain constant.
Market demand schedule
Market demand schedule definition: There is more than one consumer of a commodity in the market. Each consumer has his/her own individual demand schedule. If the quantities of all individual demand schedules are consolidated, it is called market demand schedule.
Demand Schedule Example
Let us understand the concept demand schedule with the help of a demand schedule example:
To illustrate the relation between the quantity of a commodity demanded and its price, we may take a hypothetical data for prices and quantities of commodity X. A demand schedule is drawn upon the assumption that all the other influences remain unchanged. It thus attempts to isolate the influence exerted by the price of the good upon the amount sold.
When the price of commodity X is 5 per unit, the consumer purchases 10 units of the commodity. When the price falls to 4, he purchases 15 units of the commodity. Similarly, when the price further falls, the quantity demanded by him goes on rising until at price ` 1, the quantity demanded by him rises to 60 units. The above table depicts an inverse relationship between price and quantity demanded; as the price of the commodity X goes on rising, its demand goes on falling.
The law of demand can also be represented graphically with the help of a demand curve.
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