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CAIE A-Level Economics 2.1.1 Effective Demand

Practise distinguishing effective demand from a want by requiring both willingness and purchasing power at the stated price, rather than desire or consumer surplus alone.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • state that effective demand requires willingness to purchase and the ability to pay the market price
  • reject desire without purchasing power, sector of purchase or receipt of surplus as sufficient conditions

2.1.1—Effective demand question 1

[Maximum number: 1]

What ensures that demand for a product is effective?

A

The consumer must have the ability to buy the product.

B

The consumer must purchase in the private sector of the economy.

C

The consumer must receive consumer surplus.

D

The consumer must want to buy the product.

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