Basic demand and supply analysis explains that economic variables, such as. Ib economics standard level subject brief the ib diploma programme, for students aged 16 to 19, is an academically challenging and balanced programme of education that prepares students for success at university and life beyond. For example, the elasticity of demand for latte is 2. Why is the price elasticity of supply for commodities more inelastic than the elasticity of supply for manufactured goods. There are two types of indirect taxes you need to know for your ib economics course. International baccalaureate diploma programme subject brief. For nearly 50 years, the ib has built a reputation for highquality, challenging programmes of education that develop internationally minded young people who are well prepared for the challenges of life in the 21st century and are able to contribute to creating a better, more peaceful world.
Specific tax a fixed monetary value added on every unit of produce. Below the midpoint of a straight line demand curve, elasticity is less than one and the firm wants to raise price to increase tr. The article discusses the effects of sin taxes on a demerit good and their effectiveness in countering negative externalities of consumption in the face of price inelasticity of demand. How to use these ib economics notes and study guide.
Find tips on how to tackle the ib economics course, and articles about my personal view on the global economy and financial markets. Identify elastic and inelastic demand according to the price elasticity of demand. Price elasticity of demand ped price elasticity of demand and its determinants. Microeconomics this section of economics predominantly lends itself to paper 1, where we have to answer a two part essay question purely on microeconomics plus another one on macro. Elasticity of demand the midterm 1 practice exam will be posted on course website classes exams on wednesday evening. Ib economicsmicroeconomicselasticities wikibooks, open. Gce alevel, ib hl, edexcel a2, ocr, aqa, eduqas, wjec looking for revision notes, past exam questions and teaching slides for elasticities.
It can provide valuable information with regards to the relationship between goods e. Price elasticity of demand is how economists measure the responsiveness of. Ib economics hl vocabulary list microeconomics 97 terms. Please take note that although succinct notes are essential towards your revision, they should not be the only materials you cover working through practice. Microeconomics is the study of the behaviour of key decisionmakers in an economy. In ib economics we define elasticity as a measure of how responsive one variable is to changes in price or any of the variables determinants. For example, we can compare the demands for latte and baseball tickets. This database hosts comprehensive ib economics revision notes me and my study group made for the post20 examinations syllabus currently sl material only. Indirect tax is a tax placed on the producer his produced goods andor services which is then partly passed on to the consumer in a form of a higher price.
Elasticity of demand is the ratio of two percentages and so elasticity is a number with no units. Department of economics, school of business and management sciences. This section of the course examines four types of elasticity. Ib economics revision notes are listed as in the official ib economics syllabus which can be found here. In addition, alternative courses of action to sin taxes are. If you are not registered with us then please create an account. Elasticity elastic demand elastic supply equilibrium price externalities fixed costs hl. I have included this page, which contains a pdf handout as a simple revision exercise. Draw a graph representing the supply and demand of an inelastic good and indicate what a shift in demand would do to the price of the good. Price elasticity of demand measures the responsiveness of demand after a change in a products own price. If the price rises by 3 %, the quantity demanded falls. Highquality powerpoint presentation in html5 format.
Elasticity is a central concept in economics, and is applied in many situations. Cross price elasticity definition substitutes and complements 4. He is currently head of economics, politics and business studies at malvern college, worcestershire, england. The key is to understand the formula for calculating the coefficient of price elasticity, the factors that affect. The ib diploma programme economics course emphasizes the economic theories of microeconomics, which deal with economic variables affecting individuals, firms and markets, and the economic theories of macroeconomics, which deal with economic variables affecting countries, governments and societies. I studied economics at the london school of economics and passionate about the subject and research. Elasticity is independent of the units used to measure price and quantity. Explain the concept of price elasticity of demand, understanding that it involves responsiveness of quantity demanded to a change in price, along a given demand curve. The best ib economics notes and study guide for slhl. He has examined for the ib since 1999 and teaches regularly on osc revision courses. Hl ib economics music video price elasticity parody of ice ice baby vanilla ice st. Explaining price elasticity of demand economics tutor2u. Gce alevel, ib hl, edexcel a2, ocr, aqa, eduqas, wjec elasticity refers to the extent which the quantity supplieddemanded of a good change, in relation to other factors e.
You will be required to apply your knowledge in the exams and for the internal assessment. Alevel edexcel, ocr, aqa, eduqas, wjec, ib, ial, cie edexcel economics notes directory aqa economics. It is the property of the international baccalaureate and. Section 0 introduction economics as a social science. Using information from the textdata and your knowledge of economics, evaluate the claim that protection measures will support economic growth in kenya. Price elasticity of demand and total revenue economics tutor2u. Dear students on request of many students, i have compiled a formula sheet that will come in handy for learningrevising all the important formulas used in economics. Pdf ib economics sl commentary 3 on microeconomics. Check out ours below and download them if you find it helpful. Elasticity allows us to compare the demands for different goods.
Elasticity along a straight line demand curve varies from zero at the quantity axis to infinity at the price axis. Please note that it is important that you memorize all formulas as they are often needed to solve mcqs. Elasticity refers to the extent which the quantity supplieddemanded of a good change, in relation to other factors. Students of ib economics will study the key model of supply and demand and how it operates in the market. Business management for the ib diploma teacher resource. So here are some resources to help you with this including my own coursework pieces. This is perhaps the most important microeconomic concept that you will come across in your initial studies of economics. The determinants of price elasticity of demand by jason welker in this second lesson on elasticity well outline the factors that affect the relative price elasticity of demand for a good, summarized by the useful acronym splat. The determinants of price elasticity of demand the.
May 2017 economics higher level paper 2 ib documents. When consumer income grows, quantity demanded rises by less than the rise in income. My economics professor has chosen to use the krugmanwells textbook for. Elasticities ib economics ib economics ib economics. Students take courses in six different subject groups, maintaining both breadth and depth of study. Mathematically the value is negative, but we treat it as positive. It also plays a large part in paper 3, which is the quantitative paper, although that is relatively straightforward.
The responsiveness of quantity demanded, or how much quantity demanded changes, given a change in the price of goods or service is known as the price elasticity of demand. Chemistry for the ib diploma second edition teacher resources. Ib economicsmicroeconomicskey terms wikibooks, open. Price elasticity ice ice baby vanilla ice economics. Ib points to understand for both sl and hl unless otherwise noted price elasticity of demand and its determinants. Using a definition of price elasticity of demand, explain why the revenues. Varying elasticity along a straightline demand curve. Extended essay ib economics 2335 grade c thesis pdf available. It is concerned with human beings and the social systems by which they organize their activities to satisfy basic material needs e. Environmental systems and societies for the ib diploma, second edition teachers resource. Elasticity microeconomics economics and finance khan academy. Sadly, knowing the syllabus is not enough for ib economics. Physics for the ib diploma sixth edition teachers resources. With ace your next advanced placement ap, international baccalaureate ib, or college principles exam.
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