IB Economics SL 2.5.3 PED diagrams & revenue
IB Economics SL 2.5.3 PED diagrams & revenue
Students practise explaining revenue implications of PED using demand–supply diagrams and evaluating real-world cases—like tea exports or pharmaceutical pricing—where elasticity…
How this is tested
- draw and label a demand labelling original and new equilibrium prices and quantities
- explain why cutting price lowers revenue for elastic goods when %DeltaQd exceeds %DeltaP
- evaluate whether firms should raise prices to boost revenue to justify price discrimination