Page 105 - DECO401_MICROECONOMIC_THEORY_ENGLISH

Microeconomic Theory

Notes It is known from the given table that as the price of an ice-cream increases, its demand decreases.
When ice-cream costs 1 per unit then 4 units are demanded and when it costs 4 per unit, then it is
demanded 1 unit only.

Market Demand Schedule

According to Leibhafsky, “Market demand schedule is defined as the quantities of a given commodity
which all the consumers will buy at all possible prices at a given period of time.” In every market, any
commodity like sugar has many consumers. When total demand of all the consumers of a commodity at
different prices in the market is shown by the table, then the table will be known as Market Demand Schedule.
In other words, it mentions the total demand of all the consumers of a specific commodity at different prices
in a given time. Table 2 is Market Demand Schedule. By the simple view, this table is based on that A and
B consumers of X- commodity. Adding their individual demands, market demand schedule is developed.

Table 2: Market Demand Schedule
Price of X-object Demand of A Demand of B Market Demand (Units)
( )
1 4 5 4 + 5 = 9
2 3 4 3 + 4 = 7
3 2 3 2 + 3 = 5
4 1 1 + 2 = 3
2

According to the above table, when X-object has 1 per unit price,
Consumer A demands 4 units and Consumer B demands 5 units. So Market Demand in market is
Market Demand is 9 units. When price increases with 2 per unit, the sum of total Demand by
Market Demand decreases with 7 units etc. all consumers of a commodity.
The Demand Curve is a graphic presentation of a Demand Schedule.
In the words of Leftwitch, “The Demand Curve represents the maximum quantities per unit of time
that consumers will take at various prices.”
As per Lipsey, “The curve, which shows the relation between the price of a commodity and the
amount of that commodity the consumer wishes to purchase, is called Demand Curve.”
Like Market Demand, Demand Curve can also be of two types— (1) Individual Demand Curve (2)
Market Demand Curve.
1. Individual Demand Curve: Individual Demand Curve is that curve which shows the demanded
quantity of a commodity by a consumer at different prices of that commodity which shows the

Fig. 6.1

Y
D
4
Price (`) 3 Demand Curve
2
1
D
O X
1 2 3 4

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