What is an application calendar?
In economics, a demand calendar is a table that shows the quantity demanded of a good or service at different price levels. A demand calendar can be represented as a continuous demand curve on a graph where the Y axis represents the price and the X axis represents the quantity.
Understanding the timing of the request
An application calendar most often consists of two columns. The first column lists a price for a product in ascending or descending order. The second column lists the quantity of the product desired or requested at this price. The price is determined based on market research.
When demand calendar data is graphed to create the demand curve, it provides a visual demonstration of the relationship between price and demand, allowing easy estimation of demand for a product or service at n any point on the curve.
A demand calendar tabulates the quantity of goods that consumers will buy at given prices.
Demand calendars vs supply calendars
A demand calendar is generally used in conjunction with a supply calendar, which shows the quantity of a good that would be supplied to the market by producers at given price levels. By graphing the two schedules on a graph with the axes described above, it is possible to obtain a graphical representation of the dynamics of supply and demand in a particular market.
In a typical supply and demand relationship, when the price of a good or service increases, the quantity demanded tends to decrease. If all other factors are equal, the market reaches an equilibrium where supply and demand patterns intersect. At this point, the corresponding price is the equilibrium market price and the corresponding quantity is the equilibrium quantity traded on the market.
Key points to remember
- Analysts can estimate the demand for a good at any time during the demand calendar.
- Demand calendars, used in conjunction with supply calendars, provide a visual representation of the supply and demand dynamics of a market.
Additional factors on request
Price is not the only factor that determines demand for a particular product. Demand can also be affected by the amount of disposable income available, changes in the quality of the products in question, effective advertising and even weather conditions.
Changes in the prices of related goods or services can also affect demand. If the price of a product increases, the demand for a substitute may increase, while a drop in the price of a product may increase the demand for its supplements. For example, an increase in the price of a brand of coffee maker can increase the demand for a relatively cheaper coffee maker produced by a competitor. If the price of all coffee makers drops, the demand for coffee, a supplement to the coffee maker market, may increase as consumers take advantage of the lower prices for coffee makers.