1. Introduction
A demand schedule is a table that shows the quantity of a good or service demanded at different price levels over a specific period. It represents the law of demand, which states that as price decreases, demand increases, and vice versa, assuming other factors remain constant (ceteris paribus).
A demand schedule helps businesses and economists analyze consumer behaviour, price elasticity, and market trends. It is often used to construct demand curves for better visualization of demand patterns.
2. Types of Demand Schedules
(i) Individual Demand Schedule
Definition:
- Shows the quantity of a single consumer’s demand for a product at different price levels.
Example:
A consumer’s demand for apples at various prices:
| Price per Kg (₹) | Quantity Demanded (Kg) |
|---|---|
| 100 | 2 |
| 80 | 4 |
| 60 | 6 |
| 40 | 8 |
| 20 | 12 |
Analysis:
- At ₹100 per Kg, the consumer buys only 2 Kg.
- As the price drops to ₹20 per Kg, demand increases to 12 Kg.
- This confirms the inverse relationship between price and quantity demanded.
(ii) Market Demand Schedule
Definition:
- Represents the total quantity demanded by all consumers in a market at different price levels.
- It is derived by summing up the individual demand schedules of all buyers.
Example:
Assuming three consumers (A, B, and C) in a market:
| Price per Kg (₹) | Consumer A Demand (Kg) | Consumer B Demand (Kg) | Consumer C Demand (Kg) | Total Market Demand (Kg) |
|---|---|---|---|---|
| 100 | 2 | 3 | 1 | 6 |
| 80 | 4 | 5 | 2 | 11 |
| 60 | 6 | 7 | 4 | 17 |
| 40 | 8 | 10 | 5 | 23 |
| 20 | 12 | 15 | 8 | 35 |
Analysis:
- At ₹100 per Kg, total market demand is 6 Kg.
- When the price reduces to ₹20 per Kg, total demand rises to 35 Kg.
- This reflects how lower prices attract more buyers, increasing overall demand.
3. Graphical Representation of a Demand Schedule
Demand Curve from Demand Schedule
Explanation of the Demand Curve from the Demand Schedule
This graph visually represents the inverse relationship between price and quantity demanded, as shown in the demand schedule.
- Downward Sloping Curve (Law of Demand)
- As the price decreases, the quantity demanded increases.
- This follows the law of demand, which states that consumers buy more at lower prices.
- Price Sensitivity (Elasticity Insight)
- A steeper demand curve means demand is less elastic (consumers don’t change demand much with price).
- A flatter demand curve suggests demand is more elastic (small price changes lead to larger demand shifts).
- Market Demand Behavior
- At ₹100 per Kg, demand is low (6 Kg total) because it is expensive.
- At ₹20 per Kg, demand rises significantly (35 Kg total) as it becomes more affordable.
✅ Conclusion: This graph helps businesses set pricing strategies, estimate revenue, and analyze consumer purchasing behaviour.