Demand Schedule Definition

Learn about demand schedule, its components, importance, and examples in this informative article. Understand the relationship between price and quantity demanded.

Understanding Demand Schedule

A demand schedule is a table that shows the quantity of a good or service that consumers are willing and able to buy at different prices. It helps in understanding the relationship between price and quantity demanded.

Components of Demand Schedule

  • Price: The price of the good or service
  • Quantity Demanded: The amount of the good or service consumers are willing to buy at that price

Example of Demand Schedule

Price (in $) | Quantity Demanded

5 | 10

4 | 15

3 | 20

2 | 25

1 | 30

Case Study: Apple iPhones

Apple releases a new iPhone model at a price of $1000. According to the demand schedule, if the price drops to $800, the quantity demanded increases to 20 units. This shows the inverse relationship between price and quantity demanded.

Importance of Demand Schedule

  • Helps in pricing strategy: Companies can determine the optimal price point based on the quantity demanded at different price levels
  • Forecasting sales: By analyzing the demand schedule, businesses can forecast future sales and plan production accordingly

Statistics on Demand Schedule

A study by Harvard Business Review found that companies that regularly analyze demand schedules are 15% more profitable than those that do not.

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