Loading the player...

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.

RELATED TERMS
  1. Demand

    Demand is an economic principle that describes consumer willingness ...
  2. Quantity Supplied

    The quantity supplied is a term used in economics to describe ...
  3. Equilibrium Quantity

    Equilibrium quantity represents the amount of an item that is ...
  4. Law of Demand

    The law of demand states that quantity purchased varies inversely ...
  5. Microeconomic Pricing Model

    A microeconomic pricing model is a model of the way prices are ...
  6. Derived Demand

    Derived demand is the demand for a good or service resulting ...
Related Articles
  1. Investing

    What is Deadweight Loss?

    Deadweight loss can be applied to any deficiency caused by an inefficient allocation of resources.
  2. Insights

    Cost-push inflation versus demand-pull inflation

    Gain a deeper understanding of aggregate supply and demand, forces which raise the price of goods and services.
  3. Insights

    The Dangers Of Deflation

    We look at what life would be like in a deflationary environment, and what you can do to protect your investments.
  4. Investing

    How Long Can Gas Stay Cheap?

    The current gas prices means a lot for the economy and our pockets. Let's explore how long we can expect gas prices to be low, what affects gas prices, and what changes might be in store.
  5. Insights

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  6. Investing

    Why Housing Market Bubbles Pop

    Home price appreciation is not assured. Can you withstand the volatility in this market?
  7. Investing

    Price Elasticity Of Demand

    Price elasticity of demand describes how changes in the cost of a product or service affect a company's revenue.
RELATED FAQS
  1. What are some examples of the law of demand in real markets?

    Find out how the price of a good or service affects the quantity demanded, and explore instances of consumption reflecting ... Read Answer >>
  2. Is demand or supply more important to the economy?

    Learn more about the impact of supply and demand in an economy. Find out why companies study supply and demand as part of ... Read Answer >>
  3. What are some examples of inelastic goods and services that are not affected by the ...

    Find out how the laws of supply and demand function for goods and services considered highly inelastic, including goods not ... Read Answer >>
  4. How does the law of supply and demand affect the stock market?

    Find out how the law of supply and demand affects the stock market, and how it determines the prices of individual stocks ... Read Answer >>
  5. Which factors are more important in determining the demand elasticity of a good or ...

    Learn about demand elasticity of goods and services and the main factors that influence the elasticity of demand. Read Answer >>
  6. How can I calculate a company's forward p/e in Excel?

    Discover why trading volume is higher when the price of a security changes. Supply and demand is the mechanism through which ... Read Answer >>
Trading Center