Syllabus: Cambridge - IGCSE Economics
Module: 2.3 Demand
Lesson: 2.3.1 Definition of Demand

Introduction

This article focuses on 2.3.1: Definition of Demand, a foundational topic in the Cambridge IGCSE Economics syllabus. It forms part of the broader theme of “The Individual as a Consumer” within Section 2: The Allocation of Resources.

Understanding demand equips students with the ability to explain how markets operate, interpret economic behaviours, and lay the groundwork for further study in elasticity, market equilibrium, and government intervention. For careers leads and SLT, this topic directly supports Gatsby Benchmark 4 by linking classroom learning to future economic and workplace scenarios.

Key Concepts

The Cambridge IGCSE Economics syllabus defines demand as:

• The quantity of a good or service that consumers are willing and able to purchase at a given price over a period of time.

Key elements of the definition include:

• Willingness and ability: A consumer must both desire the product and have the means to pay for it.

• Price sensitivity: As price changes, so too does the level of demand, introducing students to the law of demand.

• Ceteris paribus assumption: Students are introduced to this economic principle, meaning “all other things being equal”, which is used when analysing demand behaviour.

Other syllabus-aligned features:

• Movement along the demand curve (due to price changes)

• Shift of the demand curve (due to changes in income, tastes, population, etc.)

• The distinction between individual and market demand

These fundamentals are critical to later units on supply, price elasticity, and equilibrium.

Real-World Relevance

The concept of demand is highly observable in daily life. Teachers can use real or local examples such as:

• Petrol Prices: A sharp increase in petrol prices often leads to reduced driving or increased public transport usage, illustrating the law of demand.

• iPhone Launches: Even at high prices, early models see strong demand due to brand loyalty and perceived value.

• Seasonal Products: Ice cream demand surges in summer due to both price promotions and weather—linking to non-price determinants.

Using current economic news or local examples helps students link textbook theory to tangible scenarios, enhancing engagement and comprehension.

How It’s Assessed

Assessment in IGCSE Economics for this topic typically includes:

• Multiple-choice questions assessing understanding of demand shifts and movement along curves.

• Structured questions using diagrams to explain changes in demand.

• Short explanations defining demand or identifying factors affecting it.

• Longer response questions analysing causes and consequences of demand changes.

Common command words include:

• Define, Explain, Draw, Analyse, Identify

Teachers should encourage students to use annotated diagrams wherever possible, especially when addressing shifts versus movements on the demand curve.

Enterprise Skills Integration

Understanding demand develops students’:

• Decision-making and problem-solving: Students learn how individuals and organisations make choices with limited resources.

• Commercial awareness: This topic illustrates how consumer behaviour influences business strategy and pricing.

• Data interpretation: Analysing demand curves and graphs enhances numeracy and analytical skills.

Enterprise Skills tools like simulation-based challenges (e.g., pricing strategy for a product launch) reinforce these skills through active learning approaches proven to increase comprehension by over 70%.

Careers Links

This topic links directly to multiple career pathways:

• Economics and finance roles requiring understanding of market behaviour

• Marketing careers where consumer demand determines product pricing and promotion

• Retail and logistics where demand forecasting is critical for stock and supply chain decisions

In Gatsby terms:

• Benchmark 4: Links curriculum learning to workplace behaviour

• Benchmark 5: Simulation tools and employer-validated case studies

• Benchmark 6: Virtual business decisions replicate real workplace thinking.

Teaching Notes

Teaching Tips:

• Start with a classroom poll: “Would you still buy a chocolate bar if it cost £5?” to initiate demand thinking.

• Use mini case studies: e.g. festival ticket pricing vs demand spikes.

• Reinforce diagram skills early, as they are frequently assessed and foundational for future topics.

Common Pitfalls:

• Students often confuse a shift in demand with a movement along the curve—use contrasting examples repeatedly.

• Misunderstanding of “willing and able”—highlight the importance of income and access, not just desire.

Extension Activities:

• Ask students to track the price and demand of a real product (e.g., Freddo bars) over time.

• Use Enterprise Skills simulation resources to model a pricing decision and measure demand response.

For zero-prep tools aligned to this topic, the Skills Hub Business and Skills Hub Futures platforms offer mapped lesson plans and employer-backed resources, ideal for both subject and careers delivery.