Demand schedule is that schedule which, other things, remaining constant, expresser the relation between different quantities of the commodity demanded at different prices. The table relating to price and quantity demanded is called the demand schedule.
Demand schedule is of two types:
- (i) Individual demand schedule
- (ii) Market demand schedule.
(i) A more and more units of a commodity are consumed the marginal utility derived from each successive unit goes on diminishing. But the total utility increases up a limit.
(ii) Marginal utility of the first four units, being positive the total utility goes on increasing thus, as long as the marginal utility of the commodity remains positive, total utility goes on increasing.
(iii) Marginal utility of the sixth unit is negative (-2). As a result of it, total utility of six units of the commodity falls from 20 to 1 units.
Thus, (i) When MU diminishes, TU tends to increase at a diminishing rate. (ii) When MU is zero, Tu is maximum (iii) When MU is negative, TU starts diminishing.
