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IB Economics HL 2.6.1 Price Elasticity of Supply Questions

Practise 2.6.1 Price elasticity of supply in IB Economics HL by reviewing the concepts and applying them to marked questions.

Syllabus
First assessment 2022
Course
Economics HL
Level
HL

Exam points

  • PES equals percentage change in quantity supplied divided by percentage change in price
  • PES has a theoretical range of values and indicates responsiveness of supply to price
  • Calculation: PES, change in price, or quantity supplied from data

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Study 2.6.1—Price elasticity of supply conceptsOpen the corresponding Concept lesson for explanations, examples and exam connections.

IB Economics HL 2.6.1 Price Elasticity of Supply Questions 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 IB Economics HL 2.6.1 Price Elasticity of Supply Questions 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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