Demand Schedule

Published Dec 27, 2022

Definition of Demand Schedule

A 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. That means it shows the relationship between the price of a good or service and the quantity demanded by consumers.

Example

To illustrate this, let’s look at the demand schedule for a certain type of shoes. The table below shows the quantity of shoes demanded at different prices.

The schedule shows that at a price of USD 90, people are willing and able to buy only 25 pairs of shoes. Meanwhile, at a price of USD 70, they will demand 100 pairs, and so on. This is a demand schedule.

Why Demand Schedule Matters

Demand schedules are helpful for understanding consumer behavior, and the relationship between price and quantity demanded. They can be used to predict how changes in price will affect the quantity of a good or service demanded by consumers. This information can be used to inform pricing decisions and help businesses maximize their profits.

In addition to that, demand schedules can also be used to analyze the effects of changes in other factors, such as income, population, or tastes and preferences. This information can then be used to inform marketing and product development decisions.