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Demand Schedule Sample Problem

The table below shows the demand schedule for four different types of consumers. There are 20,000 consumers total, and they are divided evenly through types A-D.

image

What is the quantity demanded at a price of $10 for this good?

To solve this problem, we first need to know how many consumers are in each group. Since there are 20,000 consumers total, and they are evenly divided between groups, there are 20,000 divided by 4 consumer types, which means there are 5000 consumers for each customer type.

Moving on, we need to find out what the quantity demanded is at the market price of $10. How do we find that?

First we look to the chart above and locate the line that has a market price of $10. Looking horizontally, we can see that at a price of $10, people who are type A will want to purchase 4 units each. We also must remember that there are 5000 people that are classified as type A. To calculate the quantity demanded we need to multiply the number of units demanded by the number of people demanding them. Thus…

For Type A = 5000 people x 4 units demanded each = 20,000 total units demanded

For Type B = 5000 people x 8 units demanded each = 40,000 total units demanded

For Type C = 5000 people x 6 units demanded each = 30,000 total units demanded

For Type D = 5000 people x 4 units demanded each = 20,000 total units demanded

OK, so now we know the quantity demanded for each group, but we need to know the total quantity demanded for all groups, so we add all of those calculations we just did together.

Quantity demanded at price of $10 equals 20,000 + 40,000 + 30,000 + 20,000 = 110,000

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