Chapter 4: Problem 10

A demand schedule is determined by the wishes and abilities of (LOI) a) sellers b) buyers c) buyers and sellers d) neither sellers nor buyers

Short Answer

Expert verified

The short answer is: A demand schedule is determined by the wishes and abilities of \(b)\) buyers.

Step by step solution

What is a demand schedule?

A demand schedule is a table that shows the quantity of a product demanded by consumers at different price levels. It helps to determine the relationship between the price of a product and the quantity demanded at those prices. Now let's evaluate each option:

Option a) Sellers

A demand schedule is determined by the consumers' willingness and ability to purchase a product at different prices, rather than by the sellers who set the prices or supply the products. Therefore, this option is incorrect.

Option b) Buyers

A demand schedule represents the quantity that consumers are willing and able to buy at different prices. Hence, the demand schedule is determined by the buyers. Therefore, this option is correct.

Option c) Buyers and sellers

Although both buyers and sellers play a role in determining the market equilibrium (where demand meets supply), the demand schedule itself is solely based on the buyers' willingness and ability to purchase. Therefore, this option is incorrect.

Option d) Neither sellers nor buyers

As we have established that the demand schedule is determined by the buyers' willingness and ability to purchase a product at different prices, this option is also incorrect. #Conclusion# Based on the analysis above, the correct answer is option b) Buyers. The demand schedule is determined by the wishes and abilities of buyers.