Demand Schedule:
It is a tabular statement that shows different quantities of a commodity that would be demanded at different prices. It is of two types:
It is a tabular statement that shows different quantities of a commodity that would be demanded at different prices. It is of two types:
1) Individual Demand schedule :
It shows various quantities of a commodity that would be purchased at different prices during a given period.
It shows various quantities of a commodity that would be purchased at different prices during a given period.
Individual Demand schedule for
apples
Price(Rs. Per kg)
|
Quantity demanded (kg/week)
|
40
30
20
10
|
1
2
4
6
|
2) Market Demand schedule :
It shows various quantities of a
commodity that would be purchased at different prices by all the buyers during
a given period.
Market Demand Schedule for For Apples
Price(Rs./kg)
|
Quantity demanded by ‘A’(Kg per week)
|
Quantity demanded by ‘B’(Kg per week)
|
Total market
Demand (Kg per week)
(A+B)
|
40
30
20
10
|
1
2
4
6
|
2
3
5
7
|
1+2=3
2+3=5
4+5=9
6+7=13
|
Demand Curve
The
picturization of demand schedule is ‘Demand curve’. It is a
graphic presentation of the law of demand. It is of two types:
1) Individual Demand Curve :
A curve that shows different quantities of the goods which a consumer is willing to buy at different prices during a given period of time. Below shown is individiual demand curve.
A curve that shows different quantities of the goods which a consumer is willing to buy at different prices during a given period of time. Below shown is individiual demand curve.
 |
| demand curve |
In the above figure DD is the Demand Curve. The demand
curve slopes downwards from
left to right, indicating an inverse relationship between price and the quantity demanded.
left to right, indicating an inverse relationship between price and the quantity demanded.
2) Market Demand Curve :
A curve that shows different quantities of the goods which all the consumers in the market are willing to buy at different prices during a given period of time.
A curve that shows different quantities of the goods which all the consumers in the market are willing to buy at different prices during a given period of time.
Derivation Of market demand curve by
individual demand curve.
 |
| market demand curve |
The market demand
curve can be drawn by aggregating together all the individual demand curves as
shown in the above figure.
We have added the two curves DDA and DDB horizontally because we have shown the quantity demanded along the horizontal axis, and in drawing the market demand curve we have to find out the combined quantities purchased by the two households at various market prices.
The same principle is applied with more than two household also.
We have added the two curves DDA and DDB horizontally because we have shown the quantity demanded along the horizontal axis, and in drawing the market demand curve we have to find out the combined quantities purchased by the two households at various market prices.
The same principle is applied with more than two household also.
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