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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.
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RELATED QUESTIONS
Draw a demand curve with the help of a hypothetical individual demand schedule.
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(i) Open market operations.
(ii) Bank rate.
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| 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.
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Graphical representation of demand schedule.
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______ : Microeconomics : : Aggregate demand : Macroeconomics.
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| 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 |
Demand schedule is a list of prices and quantities.
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 |
The graphical representation of total demand in an economy y is a ______.
Shyam, Sita, Renu, Ahmed and John are five consumers of apples. Their demand for apples is given below. Derive the market demand schedule for apples.
| Price per Kg. (In ₹) | Quantity Demanded (Apples) in Kg. | ||||
| Shyam | Sita | Renu | Ahmed | John | |
| 25.00 | 16 | 15 | 12 | 14 | 18 |
| 30.00 | 12 | 11 | 10 | 8 | 15 |
| 35.00 | 10 | 9 | 8 | 6 | 12 |
| 40.00 | 8 | 6 | 4 | 2 | 8 |
Complete the following individual demand schedule.
| Price in (₹) | Quantity of sugar Demanded in Kgs |
| 5 | 20 |
| 6 | ______ |
| 7 | ______ |
| 8 | ______ |
| 9 | ______ |
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?
What distinguishes an individual demand schedule from a market demand schedule?
