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IB Economics HL 2.6.1 Price elasticity of supply Question Bank

Practise IB Economics SL/HL 2.6.1 by applying price elasticity of supply concepts to exam-style questions.

Syllabus
First assessment 2022
Course
Economics HL
Level
HL

Exam points

  • identify the relevant model, concept or evidence
  • apply the correct subject framework to the question
  • evaluate the result using clear evidence and subject terminology

2.6.1—Price elasticity of supply question 1

[Maximum number: 1]

Note that widgets and pidgets are imaginary products.

In the country of Burbia, the demand and supply of widgets are given by the functions

Qd=249−4PQs=150+14P\begin{aligned} & Q d=249-4 P \\ & Q s=150+14 P \end{aligned}

where Qd is the quantity demanded per month, Qs is the quantity supplied per month and P is the price per widget in dollars ($).

The final of the 2018 Football World Cup is expected to be held in the Luzhniki stadium, Moscow. The capacity of the stadium is 80000 . The expected cost of holding the final is US$12\mathrm{US}\$12 million, which is not dependent on the number of people attending the match. All tickets will be sold for the same price.

Figure for Question 2.6.1—Price elasticity of supply question 1 — IB Economics HL

State the value of the price elasticity of supply (PES) for tickets to the 2018 Football World Cup final.

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