Demand Schedules

Published Apr 13, 2023

Definition of Demand Schedules

A demand schedule is a table showing the relationship between the price of a product and the quantity demanded of that product. It lists the varying quantities of a specific product that consumers would be willing to buy at different prices.

Example

To illustrate demand schedules, let’s consider the demand for shirts. The table below shows an example of an imaginary demand schedule for shirts.

As the table shows, when the price of a shirt is USD 10, consumers are willing to buy 150 shirts. But as the price increases, the quantity demanded decreases. That’s because of the law of demand. As a result, at a price of USD 30, only 10 shirts are demanded.

Why demand schedules matter

Demand schedules are important tools for businesses to determine the optimal price to sell their products. They can help businesses identify the price points at which they can sell the greatest quantity of goods while still generating profits.

They can also be useful for policymakers and economists to analyze how price changes may affect the demand for a specific product overall or for specific groups of consumers. With this information, businesses and policymakers can make informed decisions to better serve their customers and achieve optimal outcomes.