What is a Demand Schedule?
A demand schedule is a table that shows the quantity of a particular good or service that a consumer is willing and able to purchase at different prices. It is a graphical representation of the law of demand, which states that as prices increase, demand decreases. The demand schedule provides an overview of how the demand for a product or service changes with changes in the price of the product or service.
Examples of Demand Schedules
Demand schedules are used in economics to illustrate the relationship between price and quantity demanded. Here are some examples to give you an idea of how they work:
- A demand schedule for a new phone might show that when the price is $400, the quantity demanded is 10,000 phones. When the price drops to $350, the quantity demanded increases to 12,000 phones.
- A demand schedule for a popular movie might show that when the price is $10, the quantity demanded is 5,000 movie tickets. When the price drops to $8, the quantity demanded increases to 8,000 movie tickets.
- A demand schedule for a fast-food restaurant might show that when the price of a hamburger is $2, the quantity demanded is 500 burgers. When the price drops to $1, the quantity demanded increases to 1,000 burgers.
Conclusion
Demand schedules are a useful tool for understanding the relationship between price and quantity demanded. By looking at the demand schedule for a particular good or service, it is possible to get an idea of how changes in price will affect the demand for the product or service. For further information about demand schedules, please visit the following sites: