Introduction

In economics, a demand schedule is a tabular arrangement showing the quantity demanded of a commodity at various price levels over a specific time period. Fundamentally tied to the law of demand, demand schedules demonstrate the inverse relationship between price and quantity demanded. Understanding both individual and market demand schedules is essential for anyone studying microeconomics or involved in pricing strategy.

Step 1: What Is a Demand Schedule?

A demand schedule is a table with two columns: one listing different prices and the other listing the corresponding quantities demanded at those prices. As price declines, demand increases—and vice versa—highlighting an inverse, downward‑sloping relationship known as the law of demand.

Step 2: Types of Demand Schedules

2.1 Individual Demand Schedule

Displays the quantities demanded by a single consumer at various prices, keeping other factors constant (ceteris paribus).

2.2 Market Demand Schedule

The sum of individual demand schedules, representing total market demand at each price level:
Dₘ = Dₐ + D_b + …

Step 3: Constructing a Demand Schedule

1. Identify the time period and the product.

2. Fix non-price variables: income, tastes, prices of related goods.

3. List prices in order with corresponding quantities demanded.

4. Graph the data: price on Y‑axis and quantity on X‑axis to plot the demand curve.

Step 4: Law of Demand & Demand Curve

The law of demand states: all else being equal, as price rises, the quantity demanded falls, and when price falls, quantity demanded rises—resulting in the downward-sloping demand curve. Movement along the curve occurs with price changes; shifts occur when non-price determinants change demand levels.

Step 5: Determinants of Demand

A demand schedule assumes “ceteris paribus” but shifts in these determinants cause the demand schedule to shift:

• Consumer income

• Prices of substitute and complementary goods

• Tastes and preferences

• Expectations about future price/income

• Number of buyers in the market.

Step 6: Example Table

Individual Demand Schedule (Commodity X)

As price falls from ₹50 to ₹10, quantity demanded rises from 10 to 22 units, illustrating the law of demand and forming a downward-sloping demand curve when graphed.

Market Demand Schedule aggregates several such individual schedules to reflect total market behavior.

Step 7: Relevance of a Demand Schedule

• Helps identify price elasticity of demand and sensitivity to price changes.

• Guides pricing strategy and forecasting for businesses.

• Informs market equilibrium analysis when paired with supply schedules.

• Critical for predicting overall market demand and making production decisions.

Step 8: Demand Schedule vs Supply Schedule

While a demand schedule shows quantities buyers want at various prices, a supply schedule shows what producers will supply. Plotting both on a graph reveals the equilibrium price and quantity where supply equals demand.

Step 9: Limitations of Demand Schedules

• Requires constant updating as consumer behaviors and external factors change.

• Does not account for non‑price influences unless explicitly adjusted.

• Assumes ceteris paribus, which rarely reflects dynamic real-world markets.