Demand Schedules

A demand schedule is a table or graph that shows the relationship between the quantity of a good or service demanded and the price of that good or service. The demand schedule is a useful tool for understanding how consumers make decisions about what to buy.

The demand schedule is based on the law of demand, which states that the quantity demanded of a good or service decreases as the price of that good or service increases. This is because consumers have a limited amount of money to spend, and they will buy less of a good or service if the price is too high.

The demand schedule can be used to predict how consumers will react to changes in price. For example, if the price of a good or service decreases, the demand for that good or service will increase. This is because consumers will be able to buy more of the good or service at the lower price.

The demand schedule can also be used to calculate the price elasticity of demand. The price elasticity of demand is a measure of how responsive the quantity demanded of a good or service is to changes in price. The price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price.

The demand schedule is a valuable tool for understanding consumer behavior and for making predictions about how consumers will react to changes in price.