Economics · Ch 3 — Demand
Demand Function, Demand Schedule and Demand Curve
Demand Function, Demand Schedule and Demand Curve
Demand function expresses quantity demanded as depending on price and the other determinants, written generally as:
where is quantity demanded of good , its own price, the price of related goods, income, tastes and price expectations. For the Law of Demand, this is simplified to , other variables held constant.
A simple linear demand function used throughout Gujarat Std 11 Economics numericals takes the form , where and are positive constants ( is the quantity demanded when price is zero, and shows how much quantity falls for every one-unit rise in price).
Demand schedule is a tabular statement showing the different quantities demanded of a good at different prices, at a given time, other things constant. For example:
| Price (₹ per unit) | Quantity demanded (units) |
|---|---|
| 10 | 50 |
| 8 | 60 |
| 6 | 75 |
| 4 | 95 |
| 2 | 120 |