Demand Schedule

# Demand Schedule - the contrary the curve intersects OX axis...

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Demand Schedule, Function and Law D(demand) q d Schedule P 10 0 8 1 4 2 1 3 0 4 (A) Demand Schedule : The various quantities demanded of a particular commodity are presented here in a schedule. At arbitrarily chosen prices, the quantity of a commodity an individual consumer is expected to demand, is explained by the schedule. Since quantity demanded (q d ) depends on the relevant prices of goods, the two can be expressed in the form of an algebraic function as well. The schedule shows that as price goes on rising (from zero to 4) the quantity demanded goes on falling (from 10 to zero). The scheduled information has been presented in the form of a demand curve in Figure 2 (below). In the figure, the units of quantity of the goods have been measured along the horizontal axis (OX) and the respective prices have been shown along the vertical axis (OY). The curve intersects OY axis at point A which shows highest price at which quantity demanded is zero. On

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Unformatted text preview: the contrary the curve intersects OX axis at point B showing largest quantity demanded where price is zero. Both OA and OB are said to be intercept quantities when one of the variables assumes zero value. Note that demand curve is sloping downward. This follows the law of demand (given below). But the demand curve of such a shape is obvious from the fact that quantities demanded and price in the demand schedule hold an inverse relationship . Quantity Demanded q d figure 2 Demand Function: The price-demand relationship shown above can be expressed in the form of a demand function as follows: q d = 10 - 3P On substitution of any scheduled value of P we get the relevant value of the quantity demanded. Thus when P = 1 then q d =10 - 3 (1) = 7 or when P = 3, then q d = 10 - 3 (3) = 1 etc....
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## This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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Demand Schedule - the contrary the curve intersects OX axis...

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