Syllabus: OCR - GCSE Economics
Module: 2. The Role of Markets and Money
Lesson: 2.2 Demand

Introduction

This topic, part of OCR’s GCSE Economics (J205) Component 01, introduces students to the fundamental concept of demand within the context of market economies. It encourages learners to think and behave like economists—analysing data, interpreting graphs, and drawing reasoned conclusions. Section 2.2 “Demand” is central to understanding how markets allocate resources, form prices, and react to external influences.

For teachers and leaders, this section is a cornerstone for building syllabus fluency and embedding exam-ready skills. It supports curriculum objectives while also opening the door to practical, real-world economic thinking.

Key Concepts

According to the OCR GCSE Economics specification, students should be able to:

• Define demand clearly as the willingness and ability of consumers to purchase goods and services at a given price.

• Draw and explain a demand curve using data, showing both individual and market demand.

• Distinguish between:

  • Movements along the demand curve (caused by changes in price)

  • Shifts of the demand curve (caused by non-price factors such as income or fashion)

• Analyse causes and consequences of both movements and shifts in demand from the perspectives of both consumers and producers.

• Explain price elasticity of demand (PED) and how different goods respond to price changes.

• Draw demand curves of varying elasticity and understand their implications.

• Evaluate the significance of elasticity for pricing decisions made by businesses and choices made by consumers.

Real-World Relevance

This topic links powerfully to the real economy. For example:

• Petrol prices: Despite rising fuel prices, demand remains relatively stable—illustrating inelastic demand.

• Streaming services: A shift in demand from traditional television to platforms like Netflix shows how non-price factors (technology and preferences) shift demand curves.

• Seasonal retail demand: Festive spending spikes can be analysed to show demand shifts and elasticity sensitivity (e.g. chocolate eggs at Easter vs. in July).

These examples make the abstract theory of demand tangible and provide opportunities for data-led discussion.

How It’s Assessed

OCR uses a mix of question styles to assess this topic:

• Multiple-choice to test definitions and diagram interpretation.

• Short-answer questions requiring diagram construction and explanation.

• Data response involving charts or graphs showing shifts and movements.

• Extended answers where students must analyse and evaluate elasticity scenarios, using contextual examples.

Command words to highlight include:

• Explain – for definitions and diagram steps

• Analyse – for chain-of-reasoning logic (e.g. how a shift in demand affects price)

• Evaluate – for balanced arguments about PED’s importance to firms and consumers.

Enterprise Skills Integration

Teaching demand isn’t just about diagrams—it’s an opportunity to build transferable enterprise skills:

• Problem-solving: Students must apply demand theory to new contexts (e.g. pricing decisions).

• Decision-making: They learn how consumers and businesses weigh trade-offs.

• Data interpretation: They examine demand data to spot patterns and predict responses.

• Communication: Justifying conclusions about price and elasticity sharpens argumentation skills.

Enterprise Skills’ business simulations are a plug-and-play fit here—students act as entrepreneurs making real-time pricing decisions, experiencing how demand shifts under pressure.

Careers Links

Understanding demand connects to multiple Gatsby Benchmarks:

• Benchmark 4 (Curriculum links to careers): Demand theory is used daily by marketers, retail buyers, pricing analysts, and economists.

• Benchmark 5 (Encounters with employers): Use case studies or guest talks from professionals in sales, retail, or transport logistics to bring this to life.

• Benchmark 6 (Experience of workplaces): Enterprise Skills’ Business Simulations offer authentic workplace decision-making without leaving the classroom.

Example pathways:

• Marketing Assistant: Analysing consumer demand trends.

• Retail Buyer: Predicting shifts in consumer tastes.

• Economist: Modelling elasticity for government or think tanks.

Teaching Notes

Common Pitfalls:

• Students confusing movement along with shifts of the demand curve.

• Using vague factors like “people like it more” without specifying demand determinants.

• Misapplying PED—forgetting it’s about proportional change, not absolute.

Classroom Tips:

• Use real-time polling tools to simulate demand changes in class (e.g. “Would you still buy this if it cost £10 more?”).

• Introduce mini case studies from recent economic news (e.g. “Why did Taylor Swift ticket prices stay high despite backlash?”).

• Reinforce elasticity with quick quizzes on whether goods are likely elastic or inelastic and why.

Extension ideas:

• Create a mock pricing strategy for a new product, predicting demand reactions.

• Analyse past sales data (real or simulated) to draw demand curves and estimate elasticity.

Enterprise Skills Tools:

• Plug-and-play simulations that allow students to adjust prices and instantly see changes in customer behaviour.

• Syllabus-aligned tools designed for mixed-ability groups, saving teachers time on planning and differentiation.