1- How is the demand schedule for a given good related to its demand curve? 2- H

Question

1- How is the demand schedule for a given good related to its demand curve?

2- How is the concept of “demand” related to the demand schedule and demand curve?

3- What happens to the demand schedule and demand curve for black ink pens when consumer preference for black ink pens (over blue ones) increases?

4- Why doesn’t a change in the price of eggs cause a change in the demand for eggs?

5- What causes a shortage and how can it fairly quickly be resolved?

6- What causes a surplus and how can it be fairly quickly resolved?

7- What are the determinants of inelastic demand?

8- Why does the government put excise taxes on goods with inelastic demand rather than elastic demand?

Explanation / Answer

Question 1). Answer :- Demand schedule is that schedule which, other things remaining constant, expresses the relation between different quantities of the commodity demanded at different prices. Demand curve for a given good / commodity is drawn by taking the demand schedule as a base. For example, demand schedule of an individual buying the different quantities of ice cream at different prices at a given point of time is as follows :-

It is seen from the above demand schedule that as the price of ice cream goes on increasing, the quantity demanded goes on falling. With the help of this demand schedule, demand curve can be drawn easily by taking the quantity demanded on X-axis and price on Y-axis in the graph. Infact, Demand curve is simply a graphic representation of demand schedule.

Question 2). Answer :- Demand refers to the quantities of a commodity that the consumers are able and willing to buy at each possible price of the commodity during a given period of time. Demand schedule express the relation between different quantities of the commodity demanded at different prices and Demand curve is a graphic representation of Demand schedule. The concept of "Demand" act as a basis for preparing the demand schedule and drawing the demand curve in an economics. Without understanding about the demand concept, neither demand schedule can be prepared nor demand curve can be drawn on the graph.

Question 3). Answer :- When consumer prefer more black ink pens over blue ink pens then the demand for black ink pen will increase and its price will decrease. In the demand schedule, Quantity demanded of black ink pen (in units) will increase and price of black ink pen ($) will decrease over the period of time. With the increase in the demand for black ink pen in the given question, demand curve for the black ink pen shift in the rightwards direction.

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