Page 104 - DECO401_MICROECONOMIC_THEORY_ENGLISH

Unit-6: Theory of Demand and Elasticity of Demand

that Economics defines the difference between Notes
concepts of demand and quantity demanded. About the Concept of Quantity Demanded,
Demand is the quantity that buyers are willing Two Important Views:
and able to buy at alternative prices during a i) About specific price, quantity demanded does not
given period of time. Opposite to it, the actual purchase of buyer. This is only Intended
quantity demanded is a specific amount that Purchase or a quantity which consumer wants to
buyers are willing and able to buy at given purchase.
price. For example, on one rupee per ice-
creams, the ability and willingness to buy 4 ii) Quantity demanded is a flowing concept not a stock
ice-creams by consumer is an example of concept. Its meaning is not for a different purchase
but also for a continue flow purchasing as everyday
quantity demanded, whereas 4 ice-creams at 2 ice-creams, per week 100 oranges etc. In floating
` 1, 3 ice-creams at ` 2, 2 ice-creams at ` 3 variables (as Demand) time is size whereas in stock
ability and willingness to buy by consumer is variable it’s not in size.
an example of demand.
Demand refers to the quantities of a commodity
that the consumer are able and willing to buy at every possible price during a given time period,
other things being equal.
—Ferguson

Difference between Demand and Quantity Demanded

Demand refers to a demand schedule constituted in the mind by consumer which expresses that he wants how much
quantity purchased on these possible price of anything. Oppositely quantity demanded refers to a fixed quantity of
anything that consumer wants to buy at given price.

According to B.R. Schiller, “Demand is the ability and willingness to buy specific quantity of a
commodity at alternative prices in a given time period, ceteris paribus.”

6.2 Demand Schedule and Demand Curve

As per McConnell, “Demand Schedule is a table that shows different price of a good and a quantity
of that commodity demanded at each of these prices.”
In other words, demand schedule shows those different quantities of the goods which an individual
wishes to buy at all possible prices at a given time period. This is of two types: (1) Individual Demand
Schedule and (2) Market Demand Schedule.

Individual Demand Schedule

Individual demand schedule is defined as the table which shows quantities of a given commodity
which an individual will buy at all possible prices at a given time.
Table 1 is an individual demand schedule. The different quantities of an ice-cream bought at different
prices at a time by an individual has been shown in this table.

Table 1: Individual Demand Schedule
Per unit price ( ) Quantity Demanded
1 4
2 3
3 2
4 1

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