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.
1Calculate1 mark
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Calculate the quantity demanded after the price cut.
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A good with a negative income elasticity of demand is classified as:
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Unlock Question3Define2 marks
2026
Define the term price elasticity of demand (PED).
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Unlock Question5State3 marks
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State what is meant by an inferior good.
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Identify whether the good is normal or inferior.
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State what is meant by a normal good.
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Unlock Question10Define4 marks
Define price elasticity of demand and explain the difference between elastic and inelastic demand.
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Calculate the total revenue earned by the growers.
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Identify whether the good is a luxury or a necessity.
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Unlock Question13Determine1 mark
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Determine whether the firm's total revenue will rise, fall or stay the same after the price increase.
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Table 1 shows price and quantity demanded for bus tickets. Calculate the percentage change in quantity demanded from Week 1 to Week 2.
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Unlock Question15Calculate3 marks
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Using the price elasticity of demand given in the text, calculate the percentage change in the quantity of electricity demanded by households if the tariff rises from 0.20 to 0.23 dollars per kilowatt-hour.
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Explain why the price elasticity of demand for petrol is likely to be inelastic in the short run but more elastic in the long run.
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Define price elasticity of demand (PED).
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Unlock Question18Calculate4 marks
The price of cinema tickets rises from $10 to $12 and the quantity demanded falls from 500 to 400. Calculate the PED and comment on its value.
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2026
Calculate the price elasticity of demand for bus journeys.
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2026
Define the term price elastic demand.
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