What Is Demand In Economics? class 12th/ Demand Schedule/ Demand Curve -infotech9213.

What Is Demand?

It refers to different quantities of a commodity that the consumer is ready to purchase at different possible prices of that commodity. In other words, It is a want or desire for a commodity along with ability to buy and willingness to buy.

On the other hand, demand for a commodity is the desire to buy a commodity backed with sufficient purchasing power and the willingness to spend on that commodity.

For Demand of a commodity , There are three conditions are required.

1. Willingness to purchase that commodity.
2. Enough purchasing power.
3. Willingness to spend on that commodity.

Quantity Demand

It refers to specific quantity of a commodity that consumer is ready to purchase at a specific price.

Demand Schedule

Demand Schedule is a table showing the relationship between different quantities of a commodity that buyer are ready to purchase at different possible prices of that commodity.

There are two types of demand schedule.

1. Individual Demand Schedule, and 
2. Market Demand Schedule.

1. Individual Demand Schedule.

Individual demand schedule refers to demand schedule of an individual consumer. It is a table which shows different quantity of a commodity that an individual buyer/consumer is ready to purchase at different possible prices. Table 1 is an individual demand schedule. It shows different quantities of Good-X to  be bought by a consumer at different prices of Good-X, at a given time.

   Table 1. Individual demand Schedule

PX                     (Price of Good-X)	Q x              (QD of Good-X)
1	4
2	3
3	2

 2. Market Demand Schedule.

Market demand schedule represents demand of a commodity by all consumers in the market. It is table which shows different quantity of a commodity that all buyers are ready to purchase at different possible prices. Table 2. is a market demand schedule. on the assumption that there are 3 consumers/buyers in the market , It shows different quantities of Good-X to be bought by 3 consumers at different prices of Good-X , at a given time.

  Table 2. Market  demand schedule

P	A'S QD	B’S QD	C’S    QD	MARKET DEMAND A+B+C
1	3	4	5	12
2	2	3	4	9
3	1	2	3	6

 

 Demand Curve and its Slope

It is a graphical presentation of demand schedule which shows inverse relationship between price and quantity demand. i.e. How quantity demand of a commodity is related to its own price.

There are two types of demand curve..

1. Individual Demand Curve, and
2. Market Demand Curve.

1. Individual Demand Curve.

      It is a graphical presentation of individual demand schedule. which shows different quantity of a commodity that an individual buyer is ready to purchase at different possible prices. Fig. 1 shows Individual demand curve. In this diagram, quantity of a commodity is shown on X-axis and price on Y-axis. D is the demand curve, as in Table 1.

 

                                                     Individual demand curve

Demand curve slopes downward from left to right . It shows inverse relationship between price of the commodity and quantity demand. thus, unit 4 of the commodity are demanded when price is Rs.40 per unit. while only 2 unit is demanded when price is Rs.80 per unit.

Higher price leads to fall in quantity demand, and lower price leads to rise in quantity demand of the commodity.

2. Market Demand Curve.

      It is a graphical presentation of market demand schedule. which shows various quantity of a commodity that all the buyers in the market are ready to buy at different possible prices of the commodity. Market demand curve is the horizontal summation of the individual demand curve. Fig. 2 shows Market demand curve, as in Table 2.

                                                 Market Demand Curve

Market demand curve also slopes downward from left to right showing inverse relationship between own price of the commodity and its quantity demand.

Related topics:

What is Demand Function and its types?/ Law of Demand/ Assumptions of law of Demand class 12th.

What Is Economics and Economy ? / Difference Between Micro And Macro Economics./ What Is Positive And Normative Economics?