Difference between individual demand schedule and market demand schedule



Demand schedule is the tabular statement of different quantities of a good bought of different prices of a particular moment of time. Demand schedule exhibits the relationship between the amounts of a commodity at different possible prices. Thus a demand schedule shows two columns namely amount demanded of a commodity and their corresponding prices.

Demand schedule shows the functional relationship between price quantity combinations. A man never buys a commodity in different amounts at the same prices. He buys more at fewer prices and less at high price. This fact is revealed by demand schedule. A demand schedule is of two types: individual demand schedule and market demand schedule-

Individual Demand Schedule:-

An individual demand schedule shows deferent quantities of a commodity bought by an individual consumer at different possible prices. The reaction of an individual towards the commodities at their corresponding prices is reflected by an individual demand.

Market Demand Schedule:-

A market demand schedule is the summation of innumerable individual demand schedules for a definite commodity. Each individual consumer has got his own quantity at a particular going price. Thus we can arrive at market demand schedule by combining different schedule of individuals in the market.

A market demand schedules depicts various quantities of a commodity in the market at different prices in a given point of time. A demand schedule can be graphically represented. The graphical representation of demand schedule is known as demand curve. A demand curve can be drawn either on the basis of an individual demand schedule or on the basis of a market demand schedule.

The horizontal axis measure quantity of a commodity and the vertical axis measures the price of it. By plotting different points of price-quantity combinations we get a curve which slopes negatively from left to right. This curve is the demand curve.