Individual and market demand schedule, Managerial Economics

Assignment Help:

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.


Related Discussions:- Individual and market demand schedule

Types of price elasticity of demand, Types of Price Elasticity of demand ...

Types of Price Elasticity of demand   a)     Perfectly inelastic demand Demand is said to be perfectly inelastic if changes in price have no the quantity demanded so

Economic terms a managerial decision assignment, Describe and answer in eco...

Describe and answer in economic terms a managerial decision you have knowledge about (for example one that has to be made at your place of employment). Some examples of decisions a

What is demand theory, What is Demand theory: Demand theory relates to ...

What is Demand theory: Demand theory relates to the study of consumer behaviour. It addresses questions like what incites a consumer to buy a particular product, why do consume

Difference between a static budget and a flexible budget, 1.  What is the d...

1.  What is the difference between a static (master) budget and a flexible budget? Ans:  static budget is where a budget doesn't change a volume changes.  An example could be th

Economic theory, How does economic theory contribute to managerial decision...

How does economic theory contribute to managerial decisions?

Demand-pull inflation, Demand-pull inflation is when aggregate demand exce...

Demand-pull inflation is when aggregate demand exceeds the value of output (measured in constant prices) at full employment.  The excess demand of goods and services cannot be met

Explain what is meant by price discrimination, Problem 1: a) Explain wh...

Problem 1: a) Explain what is meant by ‘price discrimination' and what are the different types of price discrimination. b) Under what conditions is it possible and profitabl

Maximisation model, write a note on marris growth maximising model?

write a note on marris growth maximising model?

"Principal Agent Problem", For this assignment, write at least two pages do...

For this assignment, write at least two pages double spaced about how the principal agent problem applies to: 1. CEO''s, and their relationship with the firm, it''s employees, and

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd