EconomicsICSE Class 10 · Chapter 5

Demand and Supply ICSE Class 10: Laws, Curves, Shifts and Determinants

Updated 14 October 2026 · Fact-checked

Demand is the quantity buyers are willing and able to buy at a price in a given time; supply is the quantity sellers are willing and able to offer. ICSE Class 10 tests types of demand, the two laws with individual and market schedules and curves, movement versus shift, determinants, and exceptions to the law of demand.

What Demand and Supply is about

Prices in a market are set by the interaction of buyers and sellers. This chapter studies the two sides separately. Demand describes how much buyers want at different prices; supply describes how much sellers offer.

The syllabus asks for: the meaning of demand and supply and the types of demand (with examples); the law of demand and the law of supply with schedules and curves, both individual and market; the difference between a movement along a curve (extension and contraction) and a shift of the curve (increase and decrease); the determinants of demand and supply; and the exceptions to the law of demand.

This is one of the most tested chapters. MCQs give a situation (a subsidy for millets, a rise in input prices, a fall in the price of mangoes) and ask what happens to a curve. Long questions ask you to state a law with a hypothetical schedule and a correctly labelled graph. CISCE examiners' comments show students mixing up demand and supply concepts, drawing the wrong slope from a wrongly built schedule, labelling a supply diagram as demand, and confusing substitutes, complements and composite demand.

Weightage: CISCE publishes no chapter weightage. The paper has a compulsory Section A (40 marks: 16 one-mark MCQs and three 8-mark questions of four 2-mark parts) and Section B, where you answer any four of six 10-mark questions (two 5-mark parts each).Source: CISCE ICSE Economics (641) specimen paper structure, 2025, retained for 2027 by the CISCE circular of 9 October 2026

Key concepts

Meaning of demand and types of demand

Demand means the quantity of a commodity that a consumer is willing and able to buy at a given price during a given period of time. Desire alone is not demand; it must be backed by the ability to pay and the willingness to spend. Demand always refers to a particular price and a particular period.

Types of demand:

Individual demand: the demand of one consumer. Market demand: the total demand of all consumers in the market at each price.
Joint (complementary) demand: goods demanded together to satisfy a want, such as a car and petrol, or a pen and ink.
Composite demand: demand for a good that can be put to several uses, so its total demand is made up of demand from many uses, for example electricity (lighting, heating, running machines) or milk (drinking, curd, sweets); a mobile phone or a laptop is similarly demanded for communication, work, study and entertainment.
Derived demand: demand for a good or factor that arises from the demand for another product, such as the demand for bricks and labour derived from the demand for houses.
Competitive demand: demand for substitutes that can replace each other, such as tea and coffee, or Coke and Fanta.
Direct demand: demand for goods that directly satisfy wants, such as food and clothes.

Worked example

(2 marks) 'Mobile phones and laptops are examples of composite demand.' Justify with a reason.

Try it first, then show the solutionSolution

Composite demand is demand for a good that can be put to several different uses - 1 mark.
Mobile phones and laptops are demanded for many uses, such as communication, study, work and entertainment, so their demand is composite - 1 mark.

Answer: Composite demand is demand for a commodity with several uses. Phones and laptops are demanded for communication, study, office work and entertainment, so their total demand is made up of these many uses.

Law of demand, schedule and curve

Law of demand: other things remaining constant, the quantity demanded of a commodity increases when its price falls and decreases when its price rises. There is an inverse relationship between price and quantity demanded.

Assumptions ('other things'): the consumer's income, tastes and preferences, prices of related goods, expectations of future prices, and the size of the population remain unchanged.

Hypothetical individual demand schedule (price per kg : quantity demanded): ₹50 : 1 kg; ₹40 : 2 kg; ₹30 : 3 kg; ₹20 : 4 kg; ₹10 : 5 kg. As price falls, quantity demanded rises.

Market demand schedule: add the quantities demanded by all consumers at each price. For example, if at ₹30 consumer A buys 3 kg and consumer B buys 2 kg, market demand at ₹30 is 5 kg.

Demand curve: plot price on the Y-axis and quantity demanded on the X-axis. The individual demand curve (DD) slopes downward from left to right. The market demand curve is the horizontal sum of all individual curves and also slopes downward but lies further to the right.

Worked example

(5 marks) State and explain the law of demand with a hypothetical schedule and graph.

Try it first, then show the solutionSolution

Statement: other things remaining constant, quantity demanded rises when price falls and falls when price rises (inverse relationship) - 1 mark.
Assumptions: income, tastes, prices of related goods and expectations unchanged - 1 mark.
Schedule: ₹50 : 1 kg; ₹40 : 2 kg; ₹30 : 3 kg; ₹20 : 4 kg; ₹10 : 5 kg - 1 mark.
Graph: price on the Y-axis, quantity demanded on the X-axis; points plotted and joined to form DD - 1 mark.
Explanation: DD slopes downward from left to right, showing the inverse relationship - 1 mark.

Answer: The law of demand states that, other things remaining constant, quantity demanded varies inversely with price. In the schedule, as price falls from ₹50 to ₹10, quantity demanded rises from 1 kg to 5 kg. Plotting price on the Y-axis and quantity on the X-axis gives a demand curve DD that slopes downward from left to right.

Movement along versus shift of the demand curve

Movement along the demand curve (change in quantity demanded) is caused only by a change in the commodity's own price, other things remaining constant.

Extension (also called expansion) of demand: more is bought because price falls (a downward movement along the same curve).
Contraction of demand: less is bought because price rises (an upward movement along the same curve).

Shift of the demand curve (change in demand) is caused by a change in any determinant other than the own price, so a different quantity is demanded at the same price.

Increase in demand: more is demanded at the same price; the curve shifts to the right (for example, because income rises or a substitute becomes dearer).
Decrease in demand: less is demanded at the same price; the curve shifts to the left.

Example: Amit buys 1 kg of mangoes at ₹120 and 2 kg when the price falls to ₹90, other things constant: this is extension of demand.

Worked example

(2 marks) Distinguish between extension of demand and increase in demand.

Try it first, then show the solutionSolution

Extension: more is bought because of a fall in the commodity's own price; it is a downward movement along the same demand curve - 1 mark.
Increase: more is bought at the same price because of a change in another factor (income, tastes, prices of related goods); the whole curve shifts to the right - 1 mark.

Answer: Extension of demand is a rise in quantity demanded due to a fall in the good's own price, shown as a movement down the same curve. Increase in demand is a rise in demand at the same price due to other factors, shown as a rightward shift of the whole curve.

Determinants of demand and exceptions to the law

Determinants of demand:
1. Price of the commodity itself.
2. Income of the consumer: for normal goods, demand rises with income; for inferior goods (such as coarse grain), demand may fall as income rises.
3. Prices of related goods: substitutes (a rise in the price of Coke increases the demand for Fanta) and complements (a rise in the price of petrol reduces the demand for cars).
4. Tastes, preferences and fashion.
5. Expectations of future price changes.
6. Size and composition of population.
7. Distribution of income.
8. Climate and season, advertising, and government policy (taxes, subsidies).

Exceptions to the law of demand (cases where more is bought at a higher price):

Giffen goods: very cheap staple foods of the poor; when their price rises, the poor have less left for better food, so they buy more of the staple.
Articles of distinction (prestige goods): diamonds, luxury cars; bought more when their price is high because they show status.
Expectation of a further price rise: people buy more now even at a higher price.
Ignorance: some buyers think a dearer good is of better quality.
Emergencies such as war or famine, when people stock up whatever the price.
Necessities such as salt and life-saving medicines: many books list them because people do not cut their purchases when the price rises; strictly, demand stays almost unchanged rather than rising.

Worked example

(2 marks) What is a Giffen good? Why is it an exception to the law of demand?

Try it first, then show the solutionSolution

A Giffen good is an inferior staple food of the poor (such as coarse grain) on which they spend a large part of their income - 1 mark.
When its price rises, they cannot afford better food and buy more of it, so quantity demanded rises with price, against the law of demand - 1 mark.

Answer: A Giffen good is a cheap staple on which poor people spend much of their income. When its price rises, they can no longer afford superior foods and buy even more of the staple, so demand rises with price, which is an exception to the law of demand.

Supply and the law of supply

Supply means the quantity of a commodity that a seller is willing and able to offer for sale at a given price during a given period of time. Stock is the total quantity available with the seller; supply is the part of the stock offered for sale at a price.

Law of supply: other things remaining constant, the quantity supplied of a commodity rises when its price rises and falls when its price falls. There is a direct relationship between price and quantity supplied.

Assumptions: the cost of production (prices of inputs), technology, prices of other goods, taxes, the goals of the firm and expectations remain unchanged.

Hypothetical individual supply schedule (price per kg : quantity supplied): ₹10 : 5 kg; ₹12 : 7 kg; ₹14 : 9 kg; ₹16 : 11 kg. Market supply is the sum of the quantities supplied by all firms at each price.

Supply curve: price on the Y-axis, quantity supplied on the X-axis. The supply curve (SS) slopes upward from left to right.

Worked example

(1 mark) A table shows price rising from ₹10 to ₹14 and quantity supplied rising from 5 kg to 9 kg. What relationship does it show?

Try it first, then show the solutionSolution

As price rises, quantity supplied also rises.
This is a direct (positive) relationship, as stated by the law of supply.

Answer: A direct relationship between price and quantity supplied (the law of supply).

Movement versus shift of the supply curve; determinants of supply

Movement along the supply curve (change in quantity supplied) is caused only by a change in the commodity's own price:

Extension of supply: more is supplied at a higher price (upward movement along the curve).
Contraction of supply: less is supplied at a lower price (downward movement along the curve).

Shift of the supply curve (change in supply) is caused by other determinants, at the same price:

Increase in supply: the curve shifts to the right, for example when input prices fall, technology improves, the government gives a subsidy, or more firms enter.
Decrease in supply: the curve shifts to the left, for example when input prices rise or a tax is imposed.

Determinants of supply:
1. Price of the commodity.
2. Prices of factor inputs (cost of production).
3. State of technology.
4. Prices of related goods (a farmer may switch land to a crop whose price has risen).
5. Goals of the firm (profit, sales, employment).
6. Number of firms in the market (for market supply).
7. Taxes and subsidies.
8. Natural factors such as weather (for farm goods) and expectations of future prices.

Worked example

(1 mark) The government decides to subsidise the production of millets. What happens to the supply curve of millets?

Try it first, then show the solutionSolution

A subsidy lowers the producers' cost of production.
At the same price, more is supplied: an increase in supply, a rightward shift.

Answer: The supply curve shifts to the right (increase in supply).

Demand and Supply in real life

Each concept, met in an everyday situation. Read the situation, answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Substitutes

Suppose a shop sells two brands of cola that most customers treat as interchangeable. One brand raises its price by ₹10 a bottle while the other keeps its price unchanged.

What happens to the demand for the unchanged brand? Show it as a movement or a shift.

Try it first, then show the solutionSolution

The two brands are substitutes.
The rise in one brand's price makes the other relatively cheaper, so more people buy it.
Its own price has not changed, so its demand curve shifts to the right: increase in demand.

Answer: Demand for the unchanged brand increases: its demand curve shifts to the right, because buyers switch to it from the now dearer substitute.

Memory hook: Rival's price up, my demand curve moves right.

Supply and input costs

Imagine the price of fertiliser and diesel doubles just before the sowing season, while the market price of wheat stays the same.

What will happen to the supply of wheat? Explain with the curve.

Try it first, then show the solutionSolution

Fertiliser and diesel are inputs; their price rise raises the cost of production.
At the same market price, farmers find it less profitable to produce, so they supply less.
The supply curve shifts to the left: decrease in supply.

Answer: The supply of wheat decreases: the supply curve shifts left, since higher input costs make farmers offer less at the same price.

Memory hook: Costs up, supply curve left.

Exceptions to the law of demand

Suppose news spreads that onion prices will rise sharply next month. Even though onions are already dearer this week, families buy more than usual.

Why does this not follow the law of demand?

Try it first, then show the solutionSolution

The law assumes no expectation of future price changes.
Expecting a further rise, people buy more now despite the higher price.
This is an exception: expectation of a future price rise.

Answer: Because people expect prices to rise further, they buy more now even at a higher price. Expectation of future price changes is an exception to the law of demand.

Memory hook: Fear of dearer tomorrow fills the bag today.

Topics in this chapter

Demand and Supply: key facts

Demand: Desire + ability to pay + willingness, at a price, in a period
Law of demand: Price up -> quantity demanded down (inverse); DD slopes downward; Ceteris paribus.
Law of supply: Price up -> quantity supplied up (direct); SS slopes upward; Ceteris paribus.
Movement (own price): Demand: extension (price falls) / contraction (price rises). Supply: extension (price rises) / contraction (price falls); Same curve.
Shift (other factors): Increase = rightward shift; decrease = leftward shift; At the same price.
Market demand or supply: Sum of individual quantities at each price; Horizontal summation.
Related goods: Substitutes (tea-coffee); complements (car-petrol)

How the board asks Demand and Supply

The question patterns to expect, and the method that works for each.

Question type	How it is asked	Method
Situation MCQ (Section A)	A subsidy, a rise in input prices, a fall in a fruit's price, a rise in a substitute's price: what happens?	Ask: own price (movement) or other factor (shift)? Then right or left.
Types of demand (2 marks)	Justify that something is composite, joint or derived demand.	Define the type, then link it to the example.
Law with schedule and graph (5 marks)	State and explain the law of demand or supply with a hypothetical schedule and graph.	Statement, assumptions, schedule with consistent numbers, labelled axes and curve, explanation of slope.
Diagram from a table (5 marks)	A table showing increase in demand at a constant price; draw and explain factors.	Draw two curves (D1, D2), label 'demand' correctly, explain two causes such as rise in income.
Determinants and exceptions (5 marks)	Explain any five determinants of demand or supply; exceptions to the law of demand.	Keep demand determinants and supply determinants separate.

Tricks to remember Demand and Supply

Short memory aids. Say each one aloud once, then use it on a question the same day.

Demand down, supply up
Demand curve slopes Down; Supply curve slopes Up.
Use it when: Drawing curves.
Own price moves, others shift
A change in the good's own price moves along the curve; anything else shifts the curve.
Use it when: Movement versus shift.
Right is more
Rightward shift = more at the same price (increase); leftward = less (decrease).
Use it when: Shift direction.
Exceptions: G-P-E-I-E-N
Giffen, Prestige, Expectations, Ignorance, Emergencies, Necessities.
Use it when: Exceptions to the law of demand.

Demand and Supply: board-level solved questions

Ordered from board level to HOTS. Cover the solution, write your own, then compare step by step.

Example 1: Input prices and supply · 1 mark · MCQBoard level

With price being the same, an increase in the price of inputs will lead to ________ in the supply curve.
(a) a rightward shift
(b) a leftward shift
(c) an upward movement along
(d) no change

Try it first, then show the solutionSolution

Higher input prices raise the cost of production.
At the same price, less is supplied: decrease in supply, a leftward shift.

Answer: (b) a leftward shift.

Example 2: Mango buyer · 1 mark · MCQHarder board level

Amit buys 1 kg of mangoes at ₹120 per kg. When the price falls to ₹90 per kg, other things remaining constant, he buys 2 kg. This shows:
(a) increase in demand
(b) extension of demand
(c) contraction of demand
(d) decrease in demand

Try it first, then show the solutionSolution

Only the mangoes' own price has changed.
A fall in own price raising quantity demanded is a movement down the curve: extension.

Answer: (b) extension of demand.

Example 3: Assertion and reason: substitutes · 1 mark · Assertion-reasonHarder board level

Assertion (A): A rise in the price of tea increases the demand for coffee.
Reason (R): Tea and coffee are complementary goods.
(a) Both A and R are true and R explains A
(b) Both A and R are true but R does not explain A
(c) A is true but R is false
(d) A is false but R is true

Try it first, then show the solutionSolution

Dearer tea makes people switch to coffee: A is true.
Tea and coffee are substitutes, not complements: R is false.

Answer: (c) A is true but R is false.

Example 4: Extension of supply · 2 marks · Very short answerBoard level

What is extension of supply? Show it with a schedule.

Try it first, then show the solutionSolution

Extension of supply is a rise in quantity supplied due to a rise in the commodity's own price, other things constant; it is an upward movement along the same supply curve.
Schedule: at ₹10, 5 kg; at ₹14, 9 kg.

Answer: Extension of supply is an increase in quantity supplied caused only by a rise in the good's own price, shown as an upward movement along the same supply curve. For example, quantity supplied rises from 5 kg at ₹10 to 9 kg at ₹14.

Example 5: Increase in demand from a table · 5 marks · Long answerHarder board level

At a price of ₹10, quantity demanded rises from 5 kg to 7 kg. (a) Describe the diagram that represents this. (b) Explain two factors that could cause it.

Try it first, then show the solutionSolution

(a) Price on the Y-axis, quantity demanded on the X-axis; original demand curve D1D1 passes through (5, ₹10).
(a) New demand curve D2D2 lies to the right, passing through (7, ₹10); the shift from D1 to D2 is an increase in demand.
(a) Label axes and curves 'Demand'.
(b) A rise in the consumer's income (for a normal good) increases demand at the same price.
(b) A rise in the price of a substitute or a favourable change in taste increases demand.

Answer: (a) Draw D1D1 through 5 kg at ₹10 and D2D2, to its right, through 7 kg at ₹10, with price on the Y-axis and quantity demanded on the X-axis; the rightward shift is an increase in demand. (b) It could be caused by a rise in income or by a rise in the price of a substitute (also a favourable change in tastes).

Example 6: Determinants of supply · 5 marks · Long answerHarder board level

Explain any five determinants of supply.

Try it first, then show the solutionSolution

Price of the commodity: higher price, more supplied.
Prices of inputs: higher costs reduce supply.
Technology: better technology lowers cost and raises supply.
Taxes and subsidies: taxes reduce supply, subsidies increase it.
Number of firms and goals of the firm (also natural factors, prices of related goods).

Answer: (1) Own price: a higher price raises quantity supplied. (2) Input prices: higher costs reduce supply. (3) Technology: improvements raise supply. (4) Taxes reduce and subsidies raise supply. (5) The number of firms and their goals affect market supply; weather affects farm supply.

Example 7: Exceptions explained · 2 marks · Short answerHOTS / competency

Explain how (a) articles of distinction and (b) expectations of future price rise are exceptions to the law of demand.

Try it first, then show the solutionSolution

(a) Prestige goods like diamonds are bought more when expensive, as a high price shows status.
(b) If people expect prices to rise further, they buy more now despite the higher price.

Answer: (a) Articles of distinction are valued for their high price as a status symbol, so a price rise may increase demand. (b) Expecting further rises, buyers purchase more now even though the price is already higher. Both break the inverse price-demand rule.

Case-study practice (Section B style)

Read the situation, then answer every part. In the board paper this is a 10-mark question split into 2 + 2 + 2 + 4 marks.

The millet market

Imagine the government declares a year for promoting millets, gives farmers a subsidy for growing them, and runs advertisements about their health benefits. At the same time, the price of wheat flour rises in the shops.

(i) · 2 marks
What happens to the supply curve of millets because of the subsidy? Explain.
Answer
Answer: It shifts to the right (increase in supply), because the subsidy lowers producers' costs, so more is supplied at every price.
1 mark for direction, 1 for reason.
(ii) · 2 marks
Give two reasons from the passage why the demand curve for millets shifts to the right.
Answer
Answer: (1) Advertising about health benefits changes tastes in favour of millets. (2) Wheat flour, a substitute, has become dearer, so buyers switch to millets.
1 mark each.
(iii) · 2 marks
Distinguish between increase in demand and extension of demand, using millets as the example.
Answer
Answer: Increase: more millets are demanded at the same price because of advertising or dearer wheat (rightward shift). Extension: more millets are bought only because their own price falls (movement along the same curve).
1 mark each.
(iv) · 4 marks
State the law of supply and give two assumptions. Why does the subsidy not count as a 'movement' along the supply curve?
Answer
Answer: Law: other things constant, quantity supplied varies directly with price. Assumptions: input prices and technology remain unchanged. The subsidy changes the cost of production, a factor other than the millets' own price, so it shifts the whole curve rather than causing a movement along it.
2 marks for law and assumptions, 2 for the explanation.

Where the marks are

How a typical answer is split into step marks. Show every step: a right final answer alone rarely earns full marks.

Composite demand: justify for phones and laptops. (2 marks) (2 marks)

Step	Marks
Definition of composite demand.	1
Link to the many uses of phones and laptops.	1

Law of demand with schedule and graph. (5 marks) (5 marks)

Step	Marks
Statement.	1
Assumptions.	1
Consistent schedule.	1
Correctly labelled graph.	1
Explanation of downward slope.	1

Where students lose marks in Demand and Supply

The slips examiners see most often, and what to write instead.

Mistake: Mixing up demand and supply concepts
CISCE examiners' comments, 2024 and 2025: candidates could not distinguish demand concepts from supply concepts (input prices, number of firms, firm goals), mixed up determinants of supply with those of demand, and confused demand and supply relationships in a table.
Do this: Buyers' factors (income, tastes, related goods) affect demand; sellers' factors (costs, technology, taxes, firms) affect supply.
Usually costs: 1 to 3 marks.
Mistake: Wrong schedule or wrong labels
CISCE examiners' comments, 2024 and 2025: candidates ignored the price-quantity relationship when building the schedule, giving the wrong slope, and wrote 'demand' instead of 'supply' (or vice versa) when labelling diagrams.
Do this: Check the schedule first: demand must rise as price falls. Label axes and curves.
Usually costs: 1 to 2 marks.
Mistake: Not identifying the effect of a determinant on a curve
CISCE examiners' comments, 2024: candidates could not identify the impact of a rise in input prices or of a subsidy on the supply curve.
Do this: Costs up = left shift; subsidy = right shift.
Usually costs: The full mark.
Mistake: Confusing substitutes, complements and composite demand
CISCE examiners' comments, 2025: candidates confused substitute with complementary goods and composite with complementary demand.
Do this: Substitutes replace each other; complements go together; composite = one good, many uses.
Usually costs: 1 to 2 marks.
Mistake: Incomplete definitions
CISCE examiners' comments, 2024: candidates missed the key concept in defining market supply.
Do this: Market supply = sum of the quantities supplied by all firms at each price.
Usually costs: 1 mark.

Practice questions on Demand and Supply

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

Q1 · 1 mark · MCQBoard level
Which of the following is an assumption of the law of demand?
(a) Prices of factor inputs remain constant
(b) Number of firms remains constant
(c) Income of the consumer remains constant
(d) Goals of the firm remain constant
Hint
Demand is about buyers.
Answer
(c) Income of the consumer remains constant. The others are assumptions of the law of supply.
Q2 · 1 mark · MCQBoard level
Which pair shows joint demand?
(a) Tea and coffee
(b) Car and petrol
(c) Coke and Fanta
(d) Butter and margarine
Hint
Used together.
Answer
(b) Car and petrol.
Q3 · 2 marks · Very short answerHarder board level
Define supply. Why is the key word 'time' included?
Hint
Per period.
Answer
Supply is the quantity a seller is willing and able to offer for sale at a given price during a given period of time. Time is included because quantities supplied must refer to a period (per day, per month); without it the figure has no meaning.
Q4 · 2 marks · Very short answerBoard level
What is derived demand? Give an example.
Hint
Comes from another good's demand.
Answer
Derived demand is the demand for a good or factor that arises from the demand for another product. For example, demand for cement and masons is derived from the demand for houses.
Q5 · 2 marks · Very short answerHOTS / competency
Why does the demand for an inferior good fall when income rises?
Hint
Switch to better goods.
Answer
With more income, consumers can afford better substitutes, so they buy less of the inferior good (for example, coarse grain replaced by rice or wheat).
Q6 · 5 marks · Long answerBoard level
Explain any five determinants of demand.
Hint
Price, income, related goods, tastes, expectations.
Answer
(1) Price of the commodity. (2) Consumer's income. (3) Prices of substitutes and complements. (4) Tastes, preferences and fashion. (5) Expectations of future prices (also population, distribution of income, season, advertising).
Q7 · 5 marks · Long answerHarder board level
Distinguish between individual and market supply schedules with a numerical example.
Hint
Add across firms.
Answer
An individual supply schedule shows the quantities one firm offers at different prices; a market supply schedule adds the quantities of all firms at each price. Example: at ₹10, firm A supplies 5 kg and firm B 3 kg, so market supply is 8 kg; at ₹12, A supplies 7 kg and B 4 kg, so market supply is 11 kg. Both slope upward, but the market curve lies further right.
Q8 · 2 marks · Very short answerHOTS / competency
A student draws an upward-sloping curve for a demand schedule in which quantity rises as price falls. Identify the error and the correct shape, explaining why.
Hint
Inverse relationship.
Answer
The curve should slope downward from left to right. When price (Y-axis) falls and quantity demanded (X-axis) rises, the points move down and to the right, showing the inverse relationship of the law of demand.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1.What does the demand curve show?Show answer
The inverse relationship between price and quantity demanded.
2.What causes a movement along a demand curve?Show answer
A change in the commodity's own price.
3.What is a rightward shift of the supply curve called?Show answer
Increase in supply.
4.Give an example of complementary goods.Show answer
Car and petrol (or pen and ink).
5.What is a Giffen good?Show answer
An inferior staple whose demand rises when its price rises.
6.What is market demand?Show answer
The sum of the quantities demanded by all consumers at each price.

Best order to study it

Meaning and types of demand.
Law of demand: schedule, curve, assumptions; individual and market.
Movement versus shift of demand; determinants; exceptions.
Supply: meaning, law, schedule, curve; individual and market.
Movement versus shift of supply; determinants.
Practise drawing and labelling all curves.

Quick revision checklist

The night before the exam: can you do each of these without looking?

Demand = willing + able, at a price, in a time.
Types: individual, market, joint, composite, derived, competitive, direct.
Law of demand: inverse; DD downward. Law of supply: direct; SS upward.
Own price change = movement (extension/contraction). Other factors = shift (increase right, decrease left).
Demand determinants: price, income, related goods, tastes, expectations, population.
Supply determinants: price, input costs, technology, related goods, goals, firms, taxes and subsidies, nature.
Exceptions: Giffen, prestige, expectations, ignorance, emergencies, necessities.

Demand and Supply: frequently asked questions

Is a rise in the price of a substitute a movement or a shift?

A shift of the demand curve for the other good, because that good's own price has not changed.

Do I need to draw market curves separately?

Yes, you should be able to show that the market curve is the sum of individual curves at each price, lying further to the right with the same general slope.

What is the difference between supply and stock?

Stock is the total quantity available with a seller; supply is the part of that stock offered for sale at a particular price in a given period.

Based on: CISCE ICSE 2027 Economics syllabus; CISCE ICSE 2025 Specimen Question Paper and Marking Scheme, Economics (641)