Answer to Question #151516 in Microeconomics for Zobia

Question

Question No. 03: What are the demand schedule and the demand curve, and how are they related? Why does the demand curve slope downward?

Answer 1

A demand schedule is a tabular representation of the quantity of goods consumers are willing and able to buy at a given time given a specific price.

A demand curve is a graphical

representation describing the relationship between the price of goods and

services and the corresponding quantity consumers are willing and able to buy

over a given period of time.

The relationship existing between

the two is that the demand schedule is a table that represents quantities

demanded at different prices. In contrast, the demand curve shows the quantity

demanded in relation to price on a graph. It can be seen that present the same

information in different ways.

The reason why the demand curve

slopes downwards can be explained in relation to price. For instance, when the quantity

supplied is high, prices fall and consequently, demand increases. Consumers

demand more at low prices and as we know the demand curve slopes downwards from

left to right; as the price reduces, demand increases.