Glossary term
Demand Schedule
A demand schedule is a table showing the quantity demanded of a good or service at different prices.
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What Is a Demand Schedule?
A demand schedule is a table that shows how much of a good or service buyers are willing and able to purchase at different prices, assuming other factors stay constant.
The demand schedule is the table behind a demand curve. When the price and quantity pairs are plotted on a graph, they form the demand curve.
Key Takeaways
- A demand schedule lists prices and quantities demanded.
- It can describe one buyer or an entire market.
- It usually assumes income, preferences, substitute prices, and other factors are unchanged.
- Plotting a demand schedule creates a demand curve.
- Demand schedules are useful for teaching, pricing, and basic market analysis.
How a Demand Schedule Works
A simple demand schedule might show that buyers demand 100 units at $10, 130 units at $8, and 170 units at $6. The table makes the price-quantity relationship explicit before it is graphed.
A market demand schedule adds together quantities demanded by many buyers at each price. That makes it useful for estimating total market demand rather than one person's behavior.
The schedule can also show where demand is more or less responsive. Large quantity changes between two price points may signal higher price sensitivity.
Because the numbers are arranged in rows, a demand schedule is often easier to audit than a chart. Readers can see the assumed price steps and quantities before interpreting a curve.
Example Demand Schedule
Price | Quantity demanded | Interpretation |
|---|---|---|
$10 | 100 units | Higher price, lower quantity |
$8 | 130 units | More buyers are willing to buy |
$6 | 170 units | Lower price, higher quantity |
$4 | 220 units | Demand expands along the schedule |
Why It Matters
Demand schedules make economic assumptions visible. They show how quantity demanded may change across a range of prices instead of focusing on only one price point.
Businesses can use the idea when planning prices, promotions, inventory, or capacity. Policymakers use similar demand relationships when estimating the effects of taxes, subsidies, and price controls.
Limits and Misunderstandings
A demand schedule is not a full forecast. It holds other factors constant, even though real markets are affected by income, preferences, competition, credit, weather, and expectations.
It also does not show supply. To estimate equilibrium price and quantity, analysts need both demand and supply conditions.
The Bottom Line
A demand schedule is a table of prices and quantities demanded. It is useful because it makes the demand relationship concrete before turning it into a demand curve.