IB Economics SL 2.1.5 Non-price determinants of demand
IB Economics SL 2.1.5 Non-price determinants of demand
Students practise explaining how income, tastes, expectations, and prices of related goods shift demand — especially using cross elasticity data and real-world policy contexts.
How this is tested
- explain that XED = -0.4 shows furnishings are complements to housing, weakly related
- evaluate how firms use cross elasticity to predict demand shifts after price changes
- explain two non-price determinants decreasing demand citing real markets like rail travel or cigarettes