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Questions
What is a demand schedule?
What do you mean by demand schedule?
Explain the concept of demand schedule.
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Solution
A demand schedule is a tabular representation showing the quantities of a good or service that consumers (individual demand schedule) or all consumers in the market (market demand schedule) are willing and able to purchase at various prices over a specific period.
It reflects the law of demand, which states that as the price of a good decreases, the quantity demanded generally increases, and vice versa, assuming other factors remain constant.
Example:
A Consumer’s Weekly Demand for Coffee
| Price per cup (in ₹) | Quality Demanded (Cups per week) |
| 4 | 2 |
| 3 | 4 |
| 2 | 6 |
| 1 | 8 |
This table shows that when the price is ₹ 4, the consumer buys 2 cups, but when the price drops to ₹1, the consumer buys 8 cups.
RELATED QUESTIONS
Explain the role of the following in correcting ‘deficient demand’ in an economy:
(i) Open market operations.
(ii) Bank rate.
Explain the role of the following in correcting ‘excess demand’ in an economy:
(i) Bank rate.
(ii) Open market operations.
The relationship between income and demand for inferior goods is ______.
Observe the following table and answer the following questions:
| Quantity demanded | ||||
| Price per kg. in ₹ | Consumer A |
Consumer B |
Consumer C |
Market demand (in kgs) (A + B + C) |
| 25 | 16 | 15 | 12 | ______ |
| 30 | 12 | 11 | 10 | ______ |
| 35 | 10 | 09 | 08 | ______ |
| 40 | 08 | 06 | 04 | ______ |
- Complete the market demand schedule.
- Draw market demand curves based on the above market demand schedule.
Identify and explain the concept from the given illustration:
Deepak decided to count how many times he had to travel by train in a period of one month.
Study the following table and answer the questions:
| Price of Chocolate (₹) | Quantity Demanded | Market Demand | ||
| Consumer A | Consumer B | Consumer C | (A + B + C) | |
| 50 | 4 | 9 | 20 | 33 |
| 100 | 3 | `square` | 15 | 26 |
| 150 | `square` | 7 | 10 | 19 |
| 200 | 1 | 6 | 5 | `square` |
| 250 | 0 | 5 | `square` | 5 |
Questions:
- Complete the above table.
- State whether the following statements are True or False:
(a) As the price rises from ₹50 to ₹250, market demand falls from 33 to 5. This fall in market demand is known as the decrease in demand.
(b) There is an inverse relationship between price and market demand.
Complete the correlation:
______ : Microeconomics : : Aggregate demand : Macroeconomics.
State with reasons whether you agree or disagree with the following statements:
When price of Giffen goods fall, the demand for it increases.
Prepare a hypothetical market demand schedule and draw a market demand curve based on it.
Identify the most efficient student:
| Name of the student |
No. of projects completed |
Quality of projects | Time taken (in days) |
| P | 5 | Average | 4 |
| Q | 5 | Very good | 4 |
| R | 5 | Very good | 7 |
| S | 6 | Poor | 3 |
From the following data regarding individual demand schedules of households A, B and market demand schedule, what will be the values of (i) and (ii) (Assuming that there are only 2 households in the market).
| Price (in ₹) | Individual Demand (units) | Market demand (units) | ||
| A | B | C | ||
| 7 | (i) | 16 | 15 | 51 |
| 8 | 18 | 15 | (ii) | 46 |
| 9 | 16 | 12 | 11 | 39 |
| 10 | 13 | 10 | 9 | 32 |
What will be the values of (i) and (ii)?
| Price (in ₹) | Quantity Demanded by | Total Demand | ||
| A | B | C | ||
| 10 | 30 | (i) | 12 | 52 |
| 20 | 20 | 8 | 9 | 37 |
| 30 | 10 | 6 | (ii) | 22 |
From the given demand schedule, what will be the effect on demand curve.
| Price in (₹) | Demand (units) |
| 20 | 100 |
| 20 | 70 |
Individual demand is a demand by a single buyer.
Construct a demand schedule showing relationship between price and quantity demanded.
Explain briefly the factors which influence individual demand for a commodity.
Define individual demand.
What does a demand schedule show?
According to the law of demand, what usually happens as the price of a commodity falls?
How is the demand curve related to the demand schedule?
Why are individual and market demand schedules useful for businesses?
