BASIC ELEMENTS OF

SUPPLY AND DEMAND

- THE DEMAND
SCHEDULE

INTRODUCTION
We will study: The Demand Schedule
The Demand Curve: Market Demand
Forces behind the Demand
Curve
Shifts in Demand
2

RECAP
Until now, we studied the basic problems of
every economy.
Mixed economies rely on a system of
markets and prices to solve these problems.
Dual monarchs?
Consumers determine what gets produced,
and where it goes; but
Technologies influence the costs, prices and
what goods are available.
The task ahead now is to see in detail
how this process works in a market economy. 3

THE DEMAND SCHEDULE

Common sense says that the amount
of a good bought by people depends on
its price.
A definite relationship between the
market price of a good and the quantity
demanded, provided other things are
held constant.

This
relationship
schedule/curve.

demand

Lets take the example of a demand

4
schedule for cornflakes.