Syllabus: Cambridge - IGCSE Economics
Module: 2.3 Demand
Lesson: 2.3.3 Individual and Market Demand

Introduction

Cambridge IGCSE Economics Section 2.3.3 introduces students to one of the most fundamental concepts in economics: individual and market demand. Aligned with the official Cambridge syllabus, this topic builds the foundation for understanding consumer behaviour, resource allocation, and market dynamics. This section is crucial not only for examination success but also for developing commercial awareness and workplace confidence across a wide range of career pathways.

Key Concepts

According to the Cambridge IGCSE Economics specification, learners should be able to:

• Define individual demand as the quantity of a good or service a single consumer is willing and able to buy at different prices over a period of time.

• Define market demand as the total quantity demanded by all consumers in a market at various prices.

• Understand how individual demand curves are derived and how market demand curves are built by horizontally summing individual demand.

• Illustrate demand curves on a graph, showing the inverse relationship between price and quantity demanded (the Law of Demand).

• Distinguish between a movement along a demand curve (caused by a change in price) and a shift in the demand curve (caused by non-price factors like income, tastes, population, etc.).

These concepts directly support the development of commercial literacy and decision-making, aligning closely with Enterprise Skills’ strategic goals.

Real-World Relevance

The behaviour of individual and market demand plays out constantly in the real world. Consider:

• Streaming services: When subscription prices rise, some users cancel—this is a movement along the demand curve. But if incomes rise generally, more people may subscribe—this is a shift in demand.

• Black Friday sales: Retailers experience sharp increases in demand at lower prices, demonstrating real-world movements along demand curves.

• Electric vehicles (EVs): Initially niche due to price and infrastructure concerns, growing environmental awareness and falling prices have shifted the demand curve outward.

Using live examples like these makes the concept of demand more tangible and relevant, reinforcing understanding beyond the exam hall and into the workplace.

How It’s Assessed

This topic is frequently assessed in short-answer and data response questions. Common command words include:

• Define: e.g. “Define market demand.”

• Explain: e.g. “Explain why a fall in the price of a good leads to an extension in demand.”

• Draw/Sketch: Students may be required to illustrate demand curves, label axes, and identify movements or shifts.

• Analyse/Discuss: Often used in longer response questions where students must evaluate changes in demand with supporting evidence.

To perform well, students must:

• Know and apply precise definitions.

• Accurately draw and interpret diagrams.

• Use real-life or hypothetical examples.

• Show understanding of both movements along and shifts of the demand curve.

Enterprise Skills Integration

This topic is a natural fit for several Enterprise Skills themes, particularly:

• Commercial Awareness: Understanding how consumer behaviour affects business performance is essential for all sectors.

• Decision-Making & Problem-Solving: Students use demand concepts to analyse pricing decisions, marketing strategies, and revenue projections.

• Cross-Curricular Application: Demand connects to business, maths (graphs, percentage changes), and geography (population shifts affecting demand).

Our simulations bring these skills to life. For example, in a business simulation, students decide on product pricing and immediately see how demand changes in response—supporting real-time application of theory.

Careers Links

Gatsby Benchmark 4 requires teachers to link curriculum to careers. This topic supports:

• Marketing Analyst – understanding consumer demand patterns

• Retail Buyer – responding to shifts in market demand

• Policy Maker – anticipating how changes in taxes or benefits affect demand

• Product Manager – setting pricing strategies

Through Skills Hub Futures, students explore roles where understanding demand curves directly informs decision-making. Sessions like “Understanding Business Models” and “Data-Driven Decisions” make these links explicit.

Enterprise Skills also supports Gatsby Benchmark 5 through employer-validated case studies and Benchmark 6 with simulated workplace experiences.

Teaching Notes

Top Tips:

• Use simple real-world examples (e.g. mobile phones, fast fashion, Spotify) to distinguish movement along vs. shift of demand curves.

• Encourage students to draw diagrams regularly—assessing them on labelling and clarity.

• Use mini case studies for active learning. E.g., “A new competitor lowers its price. What happens to your business’s demand?”

• Leverage Enterprise Skills simulations to explore demand decisions in context. Our tools improve comprehension by up to 73% compared to traditional methods.

Common Pitfalls:

• Confusing shifts with movements: Reinforce that only price causes movement along the curve.

• Mislabelled graphs: Spend time mastering accurate diagrams early.

• Overuse of technical language without understanding: Encourage students to explain concepts in their own words first.

Extension Activity:
Ask students to research a recent price change (e.g. energy bills or supermarket prices) and analyse whether the resulting consumer behaviour shows a shift or movement in demand. This helps embed theory through current events.