Introduction

In economics, a demand schedule refers to a table that displays the quantity demanded of a service or a good at varied price levels. It can also be graphed like a continuous demand curve on the chart. Here, the x-axis represents quantity, and the y-axis represents a price. On the other hand, a market demand schedule refers to the tabulation of a quantity of the goods that all the consumers from the market will purchase at a particular price. Coming to the individual demand schedule, it refers to a tabular statement showing different quantities of a commodity. This is the same commodity that a consumer is willing to purchase at different prices at a given time.

Understanding the Demand Schedule

A demand schedule consists of two important columns. The first column displays the price of any product. That may be either in an ascending or descending order. On the other hand, the second column shows the quantity of the desired product or the one that is demanded at that very price. This price is determined by the research in the said market.

A demand curve is created by graphing the data of a particular demand schedule. It, in turn, shows the relationship between the price and demand. After that, one can easily estimate the good or service demand at any point on the given curve. In other words, a demand schedule consists of the total number of goods purchased by the customers at a particular price. 

Types of Demand Schedules

A demand schedule is categorised into two types:

1. Market demand schedule
2. Individual demand schedule

Market Demand Schedule

A market demand schedule refers to the summation of individual demand schedules. In short, it depicts the demand of different customers for a particular commodity in connection with its price. A graphical representation of the market demand schedule is called the market demand curve. Here, the x-axis represents the market demand in terms of units, and the y-axis, once again, represents the price of a given commodity.

Individual Demand Schedule

This demand schedule depicts the demand of an individual customer for a particular commodity in connection with its price. A graphical representation of the individual demand schedule is called the individual demand curve. Here, the x-axis represents demand, while the y-axis represents the price of a given commodity.

Demand Schedule vs Supply Schedule

We usually use a demand schedule in coordination with a supply schedule. That further shows the quantity of the commodity that is supposed to be supplied to the market. The commodity will be supplied by the producers at a particular price level. So, that is how it is possible for anyone to get a graphical representation of the supply and demand dynamics. They can do the same by graphing the schedules on a chart. That should also include both the axes above them.

When the price of a commodity goes up in a typical demand and supply schedule, the demanded quantity always goes down. However, if every factor remains equivalent, the market also reaches equilibrium. That is where the demand and supply schedules are supposed to intersect with each other. At this very point, the equilibrium market price is none other than the corresponding price itself. Moreover, the equilibrium quantity is also the corresponding quantity that will get exchanged in the market. 

Main Factors of Demand

• It is not only price that determines the demand of a commodity. The amount of indisposable income, weather patterns, advertising, and shift in the quality of commodities also determine demand.
• A change in the price of any related good or service may affect the demand. If the price of a particular product goes up, the demand for its substitute automatically rises.
• Similarly, a fall in the price of a particular product may increase the demand for its other complements available in the market. For instance, if there is an increase in the price of a butter brand, that may lead to an increase in the demand for its competitor brand. In yet another instance, if the price of all the same products goes down, that may lead to the consumers taking advantage of the entire situation. In short, they will go for more products as the prices decline. 

Major Determinants of Demand

There are some major determinants of demand apart from the price of a given commodity. They are listed below in points.

1.   Price of the related goods. It may be a substitute or complementary good.
2.   The level of income.
3.   The expected change in price.
4.   The tastes and preferences of the consumers or buyers.
5.   Advertisements.
6.   The size of the population.
7.   Distribution of wealth and income.

The Law of Demand

The above law states that if the price of a commodity goes down, the demand for the same increases. On the other hand, if the price of a commodity goes up, the demand for the same decreases. In such situations, all the other things remain constant. Therefore, an inverse relationship exists between the price and the demanded quantity of a particular commodity. You can also represent the functional relationship between the price and the demanded quantity. It can be represented in the form of Dx = f(Px).

Conclusion

A demand schedule is an integral part of economic analysis. It is the plotting of the demand for goods and services. This schedule refers to a table that depicts the demand in quantity terms for services and goods at different price levels. The plotting of a demand schedule on the graph depicts two things – the quantity of the goods or services on the x-axis and the price of the same on the y-axis. Both the individual demand schedule and the market demand schedule are important in determining what is happening. They are represented by the individual demand curve and the market demand curve, respectively.