Individual and market demand schedule, Managerial Economics

Individual and market demand schedule

The plan of the possible quantities that will be demanded at different prices by an individual is called Individual demand schedule. Such a demand schedule is purely hypothetical, but it serves to illustrate the First Law of Demand and Supply that more of a commodity will be bought at a lower than a higher price.

Price (Kshs)                                         Quantity demanded per week

                         20                                                                                             3

                                          18                                                                                             3½

                                          16                                                                                             4

                                          14                                                                                             5

                                          13                                                                                             6

                                          12                                                                                             7

                                          11                                                                                             8

                                          10                                                                                             9

Table 1: The individual demand schedule

Theoretically, the demand schedule of all consumers of a given commodity can be combined to form a composite demand schedule, representing the total demand for that commodity at various prices. This is called the Market demand schedule.

                             Price (in KShs)                                     Quantity demanded (per week)

                                                   20                                                                                             100,000

                                                   18                                                                                             120,000

                                                   16                                                                                             135,000

                                                   14                                                                                             150,000

                                                   13                                                                                             165,000

                                                   12                                                                                             180,000

                                                   11                                                                                             200,000

                                                   10                                                                                             240,000

                                 9                                                                                            300,000

                                 8                                                                                            350,000

Table 2: The market demand schedule.

These prices are called Demand Prices. Thus, the demand price for 200,000 units per week is KShs 11 per unit.

Posted Date: 11/27/2012 4:55:06 AM | Location : United States







Related Discussions:- Individual and market demand schedule, Assignment Help, Ask Question on Individual and market demand schedule, Get Answer, Expert's Help, Individual and market demand schedule Discussions

Write discussion on Individual and market demand schedule
Your posts are moderated
Related Questions
State the Fixed factor of production Input level of a fixed factor can't be varied in the short run. Capital falls under the category of fixed factor. Capital alludes to resour

Bank Deposit Bank notes and coins together constitute the currency in circulation.  But they form only a part of the total money supply.  The larger part of the money supply i

1. Explain the industry and describe the general pattern of change of the particular market model. 2. Hypothesize the basic short-run and long-run behaviours of the model in the


Suppose that the government is the only provider of water. The market demand function reads D: Q(P) = 50 - 2P. The government''s total cost for producing water are described as fol

Q 3. What is Demand Forecasting? Explain in brief various methods of forecasting demand.

Demand Function for Money In the Keynesian analysis , the demand for money is a function of the level of income and the rate of interest. According to Milton Friedman, the dema

Let there be two consumers A and B, each buying at most two units of a good. A values having one unit at £10 and having two units at £12 whereas B values having one unit at £8 and

QUESTION 1 Negotiating skills remain a critical capability for procurement practitioners. Skilled negotiators have the potential to improve the negotiating outcome. Procurers o

“Managerial economics involves use of economic analysis to make business decisions involving the best use of a firm’s scarce resources” Explain the statement with suitable example.