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Economics · Ch 3 — Demand

Demand Function, Demand Schedule and Demand Curve

3

Demand Function, Demand Schedule and Demand Curve

Demand function expresses quantity demanded as depending on price and the other determinants, written generally as:

Qd=f(Px, Pr, Y, T, E)Q_d = f(P_x,\ P_r,\ Y,\ T,\ E)

where QdQ_d is quantity demanded of good xx, PxP_x its own price, PrP_r the price of related goods, YY income, TT tastes and EE price expectations. For the Law of Demand, this is simplified to Qd=f(Px)Q_d = f(P_x), other variables held constant.

A simple linear demand function used throughout Gujarat Std 11 Economics numericals takes the form Qd=a−bPQ_d = a - bP, where aa and bb are positive constants (aa is the quantity demanded when price is zero, and bb 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)
1050
860
675
495
2120