IB Diploma · Economics · Chapter 7

Ch 7 2.6 Elasticity of supply: complete notes

Neat, exam-ready notebook-style notes for Ch 7 2.6 Elasticity of supply, following the IB Diploma syllabus, SL and HL. This chapter is part of the complete Economics Notes for IB Diploma Students (SL and HL): All 30 Topics.

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Free preview: Ch 7 2.6 Elasticity of supply notes

A quick look at the chapter from our IB Diploma Economics notes. The full chapter notes have the detailed explanations, diagrams and practice questions with answers.

Topics in this chapter

1. What you must be able to do
2. Degrees of PES: the theoretical range
3. Constant PES: three special supply curves
4. Straight lines and the intercept rule
5. Using PES
6. Links to other topics

“I can” checklist: what you must be able to do

• I can define PES and give the formula.
• I can calculate PES from data, and a change in price or quantity supplied from a given PES.
• I can state the theoretical range of PES, from 0 to ∞, and name each degree.
• I can draw relatively elastic and inelastic supply, and perfectly elastic, perfectly inelastic and unitary supply curves.
• I can explain the determinants: time, mobility of factors of production, unused capacity, ability to store, rate at which costs increase.
• I can use diagrams to show how PES changes the effect of a demand change on price and quantity.
• HL: I can explain why the PES of primary commodities is generally lower than the PES of manufactured products.

What is inside the full chapter notes

• Concept notes with 7 worked examples (every number computed)
• Diagrams: elastic and inelastic S, constant PES, straight lines, short run and long run
• Effects of a demand change with inelastic and elastic supply
• HL page: primary commodities, volatile prices
• Common mistakes and a "How to score" command-term box
• 12 Quick-check questions A-D, explained
• Paper 1 style (a) 10 + (b) 15 with mark scheme and markbands
• Paper 2 style data response (36 marks) with mark scheme
• Quick reference and "I can" checklist

See real pages (free sample)

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What you get in the pack

• All 30 topics of IB Diploma Economics for students taking Standard Level or Higher Level (first assessment 2022): what economics is, demand, supply, market equilibrium, behavioural economics, elasticity, government intervention, externalities, public goods, asymmetric information, market power, equity, measuring economic activity, aggregate demand and supply, macroeconomic objectives, inequality and poverty, monetary policy, fiscal policy, supply-side policies, international trade, trade protection, economic integration, exchange rates, balance of payments, sustainable development, measuring development, growth and development strategies
• Every syllabus statement covered in order, each marked SL or HL, with clear notes, tables and diagrams drawn for these notes
• Every diagram the guide names, drawn and labelled, plus worked examples and model answers that show how to earn the marks
• Quick-check multiple-choice questions with explained answers, plus original Paper 1 (extended response), Paper 2 (data response) and, for HL, Paper 3 (policy) style questions with full mark schemes (no past-paper reprints)
• Common mistakes and a how-to-score command-term guide for every topic
• Quick-reference sheet and an "I can" checklist at the end of every topic
• Colour PDF and a black and white copy of every chapter for printing
• Independent notes for IB Diploma students; not endorsed by or affiliated with the International Baccalaureate Organization (IBO)

All chapters in this pack

1. Ch 1 1.1-1.2 What is economics? and How do economists approach the world?
2. Ch 2 2.1 Demand
3. Ch 3 2.2 Supply
4. Ch 4 2.3 Competitive market equilibrium
5. Ch 5 2.4 Critique of the maximizing behaviour of consumers and producers
6. Ch 6 2.5 Elasticity of demand
7. Ch 7 2.6 Elasticity of supply
8. Ch 8 2.7 Role of government in microeconomics
9. Ch 9 2.8 Market failure: externalities and common pool resources
10. Ch 10 2.9 Market failure: public goods
11. Ch 11 2.10 Market failure: asymmetric information (HL)
12. Ch 12 2.11 Market failure: market power (HL)
13. Ch 13 2.12 The market's inability to achieve equity (HL)
14. Ch 14 3.1 Measuring economic activity and illustrating its variations
15. Ch 15 3.2 Aggregate demand and aggregate supply
16. Ch 16 3.3 Macroeconomic objectives
17. Ch 17 3.4 Economics of inequality and poverty
18. Ch 18 3.5 Demand management: monetary policy
19. Ch 19 3.6 Demand management: fiscal policy
20. Ch 20 3.7 Supply-side policies
21. Ch 21 4.1 Benefits of international trade
22. Ch 22 4.2 Types of trade protection
23. Ch 23 4.3 Arguments for and against trade control and protection
24. Ch 24 4.4 Economic integration
25. Ch 25 4.5 Exchange rates
26. Ch 26 4.6 Balance of payments
27. Ch 27 4.7 Sustainable development
28. Ch 28 4.8 Measuring development
29. Ch 29 4.9 Barriers to economic growth and/or economic development
30. Ch 30 4.10 Economic growth and/or economic development strategies