I n t h I s c h a p t e r y o u w I l L

demand schedule,
a table that shows the relationship between the
price of a good and the quantity demanded. (Economists use the term 
schedule
be-
cause the table, with its parallel columns of numbers, resembles a train schedule.)
Figure 4-1 graphs the numbers in Table 4-1. By convention, the price of
ice cream is on the vertical axis, and the quantity of ice cream demanded is on the
Ta b l e 4 - 1
C
ATHERINE
’
S
D
EMAND
S
CHEDULE
.
The demand
schedule shows the quantity
demanded at each price.
P
RICEOF
I
CE
-C
REAM
C
ONE
Q
UANTITY OF
C
ONES
D
EMANDED
$0.00
12
0.50
10
1.00
8
1.50
6
2.00
4
2.50
2
3.00
0
d e m a n d s c h e d u l e
a table that shows the relationship
between the price of a good and the
quantity demanded
Price of
Ice-Cream
Cone
0
2.50
2.00
1.50
1.00
0.50
1
2
3
4
5
6
7
8
9 10 11
Quantity of
Ice-Cream Cones
$3.00
12
F i g u r e 4 - 1
C
ATHERINE
’
S
D
EMAND
C
URVE
.
This demand curve, which
graphs the demand schedule in
Table 4-1, shows how the
quantity demanded of the good
changes as its price varies.
Because a lower price increases
the quantity demanded, the
demand curve slopes downward.

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7 0
PA R T T W O
S U P P LY A N D D E M A N D I : H O W M A R K E T S W O R K
horizontal axis. The downward-sloping line relating price and quantity demanded
is called the