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- Demand Curve
- Supply Curve
What Is a Demand Schedule?
In economics, a demand schedule is a table that shows the quantity demanded of a good or service at different price levels. A demand schedule can be graphed as a continuous demand curve on a chart where the Y-axis represents price and the X-axis represents quantity.
Demand Schedule
Understanding Demand Schedule
A demand schedule most commonly consists of two columns. The first column lists a price for a product in ascending or descending order. The second column lists the quantity of the product desired or demanded at that price. The price is determined based on research of the market.
When the data in the demand schedule is graphed to create the demand curve, it supplies a visual demonstration of the relationship between price and demand, allowing easy estimation of the demand for a product or service at any point along the curve.
A demand schedule tabulates the quantity of goods that consumers will purchase at given prices.
Demand Schedules vs. Supply Schedules
A demand schedule is typically used in conjunction with a supply schedule, which shows the quantity of a good that would be supplied to the market by producers at given price levels. By graphing both schedules on a chart with the axes described above, it is possible to obtain a graphical representation of the supply and demand dynamics of a particular market.
In a typical supply and demand relationship, as the price of a good or service rises, the quantity demanded tends to fall. If all other factors are equal, the market reaches an equilibrium where the supply and demand schedules intersect. At this point, the corresponding price is the equilibrium market price, and the corresponding quantity is the equilibrium quantity exchanged in the market.
Key Takeaways
- Analysts can estimate the demand for a good at any point along the demand schedule.
- Demand schedules, used in conjunction with supply schedules, provide a visual depiction of the supply and demand dynamics of a market.
Additional Factors on Demand
Price is not the sole factor that determines the demand for a particular product. Demand may also be affected by the amount of disposable income available, shifts in the quality of the goods in question, effective advertising, and even weather patterns.
Price changes of related goods or services may also affect demand. If the price of one product rises, demand for a substitute may rise, while a fall in the price of a product may increase demand for its complements. For example, a rise in the price of one brand of coffeemaker may increase the demand for a relatively cheaper coffeemaker produced by a competitor. If the price of all coffeemakers falls, the demand for coffee, a complement to the coffeemaker market, may rise as consumers take advantage of the price decline in coffeemakers.
Glossary
Economics, 6e
Chapter 3: Markets, Demand and Supply, and the Price System
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
barter the direct exchange of goods and services without the use of money
complementary goods�� "goods that are used together; as the price of one rises, the demand for the other falls "
demand "the amount of a product that consumers are willing and able to buy at each possible price during a given period of time, everything else held constant "
demand curve a graph of a demand schedule that
meas�ures price on the vertical axis and quantity demanded on the horizontal axis
demand schedule a table or list of the prices and the corre��sponding quantities demanded of a particular good or service
determinants of demand�� "factors other than the price of the good that influence demand�income, tastes, prices of related goods and services, expectations, and number of �buyers "
determinants of supply�� "factors other than the price of the good that influence supply�prices of resources, technology and productivity, expectations of producers, number of �producers, and the prices of related goods and services "
disequilibrium a point at which quantity demanded and quantity supplied are not equal at a particular price
double coincidence of wants the situation that exists when A has what B wants and B has what A wants
exchange rate the rate at which monies of different countries are exchanged
equilibrium the price and quantity at which quantity demanded and quantity supplied are equal
inferior goods goods for which demand decreases as income increases
law of demand " the quantity of a well-defined good or service that people are willing and able to purchase during a particular period of time decreases as the price of that good or service rises and increases as the price falls, everything else held constant "
law of supply "the quantity of a well-defined good or service that producers are willing and able to offer for sale during a particular period of time
increases as the price of the good or service increases and decreases as the price decreases, everything else held constant "
market a place or service that enables buyers and sellers to exchange goods and services
normal goods goods for which demand increases as income increases
price ceiling a situation in which the price is not allowed to rise
above a certain level
price floor a situation in which the price is not allowed to decrease below a certain level
productivity the quantity of output produced per unit of resource
quantity demanded the amount of a product that people are willing and able to purchase at a specific price
quantity supplied "the
amount sellers are willing and able to offer at a given price during a given period of time, everything else held constant "
relative price the price of one good expressed in terms of the price of another good
shortage a quantity supplied that is smaller than the quantity demanded at a given price; it occurs whenever the price is less than the equilibrium price
substitute goods "goods that can be used in place of each other; as the price of one rises, the demand for the other rises "
supply "the amount of a good or service that producers are willing and able to offer for sale at each possible price during a period of time, everything else held constant "
supply curve a graph of a supply schedule that measures price on the
vertical axis and quantity supplied on the horizontal axis
supply schedule a table or list of prices and corresponding quantities supplied of a particular good or service
surplus a quantity supplied that is larger than the quantity demanded at a given price; it occurs whenever the price is greater than the equilibrium price
transaction costs the costs involved in making an exchange