Demand schedule and curves

INDIVIDUAL DEMAND SCHEDULE AND CURVE

An individual consumers demand refers to the quantities of a commodity demanded by him at various prices, other things remaining equal. His demand for a commodity is shown on the demand schedule and demand curve.

A Demand Schedule is a list of prices and quantities and its graphic representation is a Demand Curve.
****draw demand schedule
The above demand schedule reveals that when the price is Rs.6, the quantity demanded is 10 units. If the price happens to be Rs.5, the quantity demanded is 20 units, and so on.

****draw demand curve
In the above figure DD1 is the demand curve drawn on the basis of above demand schedule. The dotted points P,Q,R,S,T and U show the various price-quantity combinations. The 1st combination is shown by the 1st dot and the remaining combinations move to the right towards D1.

MARKET DEMAND SCHEDULE AND CURVE

In a market, there is not one consumer but many consumers of a commodity. The market demand of a commodity is depicted on a Demand Schedule and a Demand Curve. They show the sum total of various quantities demanded by all the individuals at various prices.

Suppose there are 3 individuals A,B and C in a market who purchase the commodity. The demand schedule for the commodity is depicted in the table below.
****draw table
The last column of the above table represents the market demand of the commodity at various prices. It is arrived at by adding columns (2), (3) and (4) representing the demand of consumers A, B and C respectively. The relation between columns (1) and (5) shows the market demand schedule.When the price is very high, Rs.6/kg, the market demand for the commodity is 70kgs. As the price falls, the demand increases. When the price is the lowest, Rs.1/kg, the market demand per week is 360 kgs.

****draw diagram
In the above diagram 3 individuals have been considered A,B, and C in a market who buys OA, OB and OC quantities of the commodity at price OP, as shown in Panels (A), (B) and (C) respectively in the above figure. In the market, OQ quantity will be bought which is made up by adding together the quantities OA, OB and OC. The market demand curve, Dm is obtained by the lateral summation of the individual demand curves Da , Db and Dc in Panel (D).


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