Demand schedule
Demand schedule is a table that shows the quantity of a good or service that consumers are willing and able to purchase at different prices. It represents the relationship between price and quantity demanded.
The demand schedule typically lists prices in one column and the corresponding quantity demanded in another column. As prices increase, the quantity demanded usually decreases, while as prices decrease, the quantity demanded usually increases. This inverse relationship between price and quantity demanded is known as the law of demand.
For example, let’s look at a hypothetical demand schedule for apples:
| Price per apple | Quantity demanded |
|---|---|
| $1 | 10 |
| $0.75 | 15 |
| $0.50 | 20 |
In this example, as the price of apples decreases, the quantity demanded increases. This demonstrates the law of demand in action.
Understanding the demand schedule is crucial for businesses and policymakers to make informed decisions about pricing, production, and resource allocation.
For more information about demand schedules, you can visit Wikipedia.