REPORT NO.

6
SAMANTHA V. ALCANTARA

DEMAND
SCHEDULE
MICROECONOMICS
 DEMAND SCHEDULE

-a demand schedule is a table that shows the quantity demanded of a good

or service at different price levels.
• Demand schedule is referred to as a tabular representation or a tabular
statement that shows various quantities of commodities that are
demanded at different price levels at a specific time period.
• A demand schedule will show the exact number of units of goods and
services that will be bought at each price. Demand schedule shows the
relationship between the price of a commodity and the quantity
demanded.

• Law of Demand states that as the price of a commodity falls,

the corresponding demand increases and with rise in price, the
demand of the commodity decreases. Therefore, there is an
inverse relationship between the price of a commodity and its
demand.
Example 2
Assume someone is shopping for a water bottle and they find a $10 water
bottle they like. Because of the price, they decide to buy one for each member
of their household. As the price increases, they might decide to purchase fewer
water bottles.

For example, once the price reaches $20, they may decide to only purchase one
for themselves and one for their spouse, but none for their children. When the
price reaches $25, they only buy one for themselves.
The water bottle company may use this information to determine how they
should price their bottles by creating a demand schedule that looks like this:

Number of bottles purchased (by

Price per water bottle
household)

$10 4

$15 3

$20 2

$25 1
Example 3
An airline prepares a demand schedule for their airline tickets. They include the
price of the tickets, and they separate the demand depending on whether it's a
domestic or international flight. By arranging their demand schedule this way
they can assess how the changes in their prices affect both of their markets.
This is their demand schedule:

International
Price per ticket Domestic demand Total demand
demand

$500 201 799 1,000

$540 594 395 989

$600 465 409 874

$650 637 219 856

$700 531 276 807

$800 497 298 795

IMPORTANCE OF DEMAND SCHEDULE

• Determine which price is most appealing: For marketing teams
or other administration, demand schedules may be useful to
help determine the price to sell their products or services. The
curve of a demand schedule can show at what price the buyer
purchases fewer of the item, reducing profits.
• Calculate the elasticity of the product: Elasticity is the
relationship between the price of a product and how much of
the product the market demands. If the price significantly
affects the quantity demanded, the elasticity is high, and if it
does not the product is inelastic.
• Predict the potential demanded quantity: Demand schedules
can be used to predict the amount of material necessary based
on the price of a product. If the demand schedule predicts that
the quantity demanded rises as the price decreases, the
company may need more supplies to produce more products.
• Identify other determinants of demand: Demand schedules
may be used to identify if other determinants of demand are
affecting the quantity demanded. Other determinants can
include trends, incomes, competition and expectations.