CAIE A-Level Economics 2.1.1 Effective Demand

CAIE A-Level Economics 2.1.1 Effective Demand
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

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.

How this is tested

  • 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

Question 5

[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.