What are the demand schedule and the demand curve and how ar

What are the demand schedule and the demand curve, and how are they related? Why does the demand curve slope downward? 2.

Solution

Demand schedule is the tabular representation of quantity demanded at various price level keeping other factor constant. Whereas demand curve is the graphical representation of quantity demanded and prices, ceteris paribus

demand curve is derieved from demand schedule or demand schedule tells us the slope and shape of demand curve.

Demand curves slopes downward because of

1) Income effect- decrease in price will imcrease the real income and thus increases demand

2) substitution effect- decrease in relative price will increase the demand as people will switch.

3) No. Of consumer increases.

4) because of Law of DMU and we know consumer equilibrium is at a point where P=MU