Derivation of an Individual Demand Curve. |
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| Ans : (i) Individual demand schedule
Ans:- It is a table that shows various quantities of a commodity that a consumer is able and willing to purchase at various prices and at particular place and time. An individual demand schedule is presented below:
Price Quantity demand
12
10
10
20
8
30
6
40
4
50
2
60
In the above table, it is clear that there is negative relation between price and quantity demand. At initial price Rs.12 quantity demand is 10 units. When price decreases to Rs.10 quantity demand increases to 20 units. Again when price decreases to Rs.8 quantity demand increases to 30 units and so on.
(ii) Individual demand curve
Ans:- It is the diagrammatic representation of various quantities of a commodity that a consumer is able and willing to purchase at various prices and at particular period of time and place. An individual demand curve is presented below:
In the above diagram, ox-axis represent quantity demand and oy-axis represent price of commodity. Let the initial price be Rs.12 quantity demand is 10 unit. When price decreases to Rs.10, quantity demand increases to 20 units. Again when price decreases to Rs.8, quantity demand increases to 30 units and so on. DD is the individual demand curve which slopes downward from left to right. It shows that there is negative relation between price and quantity demand.
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