Unit 2: Microeconomics
Topic 2.5: Elasticity of Demand Questions
Practice 20 exam-style questions for IB Economics Topic 2.5. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
1state3 marks
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State what a positive value of XED indicates about two goods.
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Define price elasticity of demand and explain the difference between elastic and inelastic demand.
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State what a negative value of XED indicates about two goods.
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Define price elasticity of demand and explain the difference between elastic and inelastic demand.
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State what a negative value of XED indicates about two goods.
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State what is meant by an inferior good.
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State what is meant by a normal good.
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State what is meant by a normal good.
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If the cross elasticity of demand (XED) between goods A and B is −0.8, the goods are:
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State what a positive value of XED indicates about two goods.
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State what is meant by an inferior good.
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A good with a negative income elasticity of demand is classified as:
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A good with a negative income elasticity of demand is classified as:
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A product has PED of −0.3. Explain what this means.
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