What is the Demand Schedule
In economics, the demand schedule is a table showing the quantity demanded of a good or service at different price levels. The 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.
BREAKING DOWN Demand Schedule
The 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 that is desired, or demanded, at that price, which is determined based on research of the market. When the data in the demand schedule is graphed to create the demand curve, it provides a visual demonstration of the relationship between price and demand, allowing an easy estimation of the demand for a product or service at any point along the curve.
Demand and 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. 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 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.
Additional Factors on Demand
Price is not the sole factor that determines 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 of that product 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.