demand | the desire to own something ang the ability to pay for it |
law of demand | consumers buy more of a good when its price decreases and less when its price increases |
substitution effect | when consumers react to an increase in good's price by consuming less of that good and more of other goods |
income effect | the change in consumption resulting from a change in real income |
demand schedule | a table that lists the quantity of a good a person will buy at each different price |
market demand schedule | a table that lists the quantity of a good all consumers in a market will buy at each differnt price |
demand curve | a graphic representation of a demand schedule |
ceteris paribus | a Latin phrase that means "all other things held constant" |
normal good | a good that consumers demand more of when their incomes increase |
inferior good | a good that consumers demand less of when their incomes increase |
complements | two good that are bought and used together |
substitutes | good used in place of one another |
elasticity of demand | a measure of how consumers react ot a change in price |
inelastic | describes demand that is not very sensitive to a change in price |
elastic | describes demand that is very sensitive to a change in price |
unitary elastic | describes demand whose elasticity is exactly equal to 1 |
total revenue | the total amount of money a firm receives by selling goods or services |
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Type: Multiple-Choice
Category: Economics
Level: Grade 12
Author: adriscoll24422
Last Modified: 10 years ago
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A table that lists the quantity of a good all consumers in a market will buy at each different price.
- substitution effect schedule
- market demand schedule
- individual demand schedule
- income demand schedule
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.