IB Economics SL 2.5.1 Concept of elasticity
IB Economics SL 2.5.1 Concept of elasticity
Students practise distinguishing between price, income, and cross-price elasticity concepts—and defining terms like 'price inelastic'—using textual evidence and calculation…
How this is tested
- define 'price inelastic' by referencing responsiveness of quantity demanded to price change
- distinguish YED from XED by whether demand changes with income or another good's price
- calculate XED from tabulated data then interpret sign to classify substitutes or complements