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IB Economics HL 2.5.1 Concept of Elasticity Questions

Practise IB Economics HL 2.5.1 by defining price inelastic demand and calculating cross-price elasticity from percentage changes.

Syllabus
First assessment 2022
Course
Economics HL
Level
HL

Exam points

  • define elasticity and price inelastic demand, including the idea that a percentage change in quantity is smaller than the percentage change in price and that elasticity is below one
  • calculate cross-price elasticity of demand from percentage changes in quantity demanded and the price of a related good, using the correct formula and working
  • interpret an elasticity value in context, distinguishing responsiveness to price from relationships between goods and explaining what the sign and magnitude indicate

Learn this topic

Study 2.5.1—Concept of elasticity conceptsOpen the corresponding Concept lesson for explanations, examples and exam connections.

IB Economics HL 2.5.1 Concept of Elasticity Questions question 1

[Maximum number: 2]

Figure 1 illustrates the production possibilities for rice and pencils in Country H. Resources in Country H are fully employed.

Figure 1

Figure 1

Table 1 provides information about Good X and Good Y, which are related goods.

Table 1

Table 1

Using Table 1, calculate the cross price elasticity of demand between Good X and Good Y when the price of Good X increases.

The demand for Good Z is income inelastic.

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