Demand schedule is referred to as a tabular representation or a tabular statement that shows various quantities of commodities that are demanded at different price levels at a specific time period.
A demand schedule will show the exact number of units of goods and services that will be bought at each price. Demand schedule shows the relationship between the price of a commodity and the quantity demanded.
Law of Demand states that as the price of a commodity falls, the corresponding demand increases and with rise in price, the demand of the commodity decreases. Therefore, there is an inverse relationship between the price of a commodity and its demand.
Types of Demand Schedule
Demand schedule can be divided into two types:
1. Individual Demand Schedule
2. Market Demand Schedule
Let us know more about the types of demand schedules in the following lines.
Individual Demand Schedule: Individual demand schedule is a tabular representation of the quantities of goods that an individual demands at different prices and time, keeping all the other factors constant.
Market Demand Schedule: Market consists of many individuals who are the consumers of a particular commodity available in the market. Therefore, each of these individuals will have a separate demand schedule.
When the demand schedules of all such individuals in the market are consolidated and put in one place.
We obtain various quantities of commodities that the consumers are willing to buy, at different price levels, it is considered as the market demand schedule.
It can be represented as:
Market Demand Schedule (Dm) = DA + DB + ……….
Dm = Market Demand Schedule
DA = Individual demand schedule of Individual A
DB = Individual demand schedule of Individual B
This concludes the topic of Demand Schedule, which is an important topic of Economics for Commerce students. For more such interesting articles, stay tuned to CoolGyan’S.