A demand schedule is a table showing the quantity demanded of a good or service at different price levels. It can be graphed as a two-column table or as a continuous demand curve on a chart where the Y-axis represents price, and the X-axis represents quantity.
Explanation:
According to the Law of Demand, the higher the price of a commodity, the lower the quantity demanded, and the lower the price of a commodity, the higher the quantity demanded, while other characteristics remain constant. Therefore, the relationship between price and quantity of a product is inverse.
A demand schedule usually includes two columns. The first column represents a price in ascending or descending order. The second column refers to the quantity of the product demanded at that price. Market research determines the price listed in the demand schedule. Below is the example of a demand schedule and a demand curve:
The demand schedule and the demand curve above demonstrate the demand for a product. When the price of the product is $2 per unit, for example, its demand is 2.5 kg, and when the price is $0.5 per unit, its demand is 7 kg.
A demand schedule provides a company or an individual with a visual demonstration of the relations between price and demand, making the estimation of the demand for a service or product easy. A demand schedule is often used together with a supply schedule that shows the quantity of a good to be delivered to the market by producers at specific price levels. Representing both schedules on a chart with Y- and X-axis allows us to get the full picture of the supply and demand of a particular market.
Price is not the only determinant of the demand for a product, and thus, additional factors should also be considered. Disposable income amount, the quality of goods, advertising, weather, and many other factors may affect the demand.