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
Q. Illustrate Internal Economies of Scale? Internal economies of scale are the benefits of large scale production. They are enjoyed by the firm when it increases its scale of p

free trade promotes a mutually profitable regional division of labour greatly enhances the potential real national product ofall nations and makes possible higher standards of livi

Q. Evaluate Total Cost - Fixed and Variable ? Total cost (TC) of the firm is a function of output (q). It would increase with the increase in output, which is, it differs dire

A risk-neutral agent's working life has two periods. In each period, the agent can provide high effort (at personal cost $2,000) or low effort (at zero personal cost). In a given p

Average Propensity to save The Average Propensity to Save [APS] is defined as the fraction of aggregate national income which is devoted to savings.  Thus if S denotes savin

Bank of Central Clearance ,Settlement and Transfer This function was first developed by the bank of England toward the middle of the nineteenth century. In 1954, a scheme was

Question 1: Either ‘Today the business organizations are quite different from the traditional classical firm with a wide range of objectives.' Discuss the above statement

Ask quesCase Study Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sens

Q. Explain about Smooth Convex Isoquant? Smooth Convex Isoquant: This kind of isoquant presumes continuous substitutability of capital and labour over a certain range, beyond

CONTRACTING AND INSIDER-OUTSIDER MODELS OF UNEMPLOYMENT   From  the  Walrasian  assumption  of  a market-clearing wage  on  efficiency considerations  -  it was  postulated  th