What this practice covers
These questions are drawn from past IB Economics papers and filtered to elasticity of demand (ped & yed). You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on elasticity of demand (ped & yed), taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Reporting PED with the minus sign and then misclassifying by sign instead of absolute value.
- Saying a price rise "always" raises revenue, it depends entirely on elasticity.
- Confusing PED (movement along the curve) with YED (a shift of the curve).
- Treating a whole demand curve as having one elasticity.
- Applying the demand rule to supply, a straight-line supply curve through the origin has PES = 1 throughout.
- Assuming whoever pays the tax to the government bears it.
- Treating revenue as profit.
- Calculating correctly and stopping. The number is worth little until it is interpreted.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Elasticity of Demand (PED & YED) revision notes.