PED=%ΔQd%ΔPPED equals the fraction with numerator % cap delta cap Q sub d and denominator % cap delta cap P end-fraction
Think of the IB Economics HL formula booklet not as a crutch, but as a roadmap. By memorizing what the variables mean and practicing how to quickly manipulate linear equations, you can turn the quantitative sections of the exam into a reliable source of high marks. Combine your mathematical precision with clear diagrams and robust economic evaluation to secure your Level 7.
Area above the supply curve and below the market price. Calculated as: Social/Community Surplus: Indirect Taxes (Specific Tax) ib economics hl formula booklet
"If MPC = 0.75 and the government wants to increase GDP by $200B, how much must it spend?"
When nations trade or implement protectionist policies (tariffs or quotas), you must evaluate market impacts geometrically and algebraically. Tariff and Quota Calculations PED=%ΔQd%ΔPPED equals the fraction with numerator % cap
CPI=Cost of Basket in Current YearCost of Basket in Base Year×100CPI equals the fraction with numerator Cost of Basket in Current Year and denominator Cost of Basket in Base Year end-fraction cross 100
XED=%ΔQd, Good X%ΔP Good YXED equals the fraction with numerator % cap delta cap Q sub d comma Good X end-sub and denominator % cap delta cap P sub Good Y end-sub end-fraction Interpretation: Positive ( >0is greater than 0 ) for substitutes; negative ( Area above the supply curve and below the market price
The Ultimate Guide to the IB Economics HL Formula Booklet: Master Your Quantitative Assessment
the fraction with numerator cap delta cap T cap C and denominator cap delta cap Q end-fraction Total Revenue (TR): Average Revenue (AR): Marginal Revenue (MR):
%Δ=New Value−Old ValueOld Value×100% cap delta equals the fraction with numerator New Value minus Old Value and denominator Old Value end-fraction cross 100 Market Equilibrium and Welfare is autonomous demand and is the slope). Linear Supply Function: is autonomous supply and is the slope). Equilibrium Condition: Set to solve for the equilibrium price ( P*cap P raised to the * power ) and quantity ( Q*cap Q raised to the * power
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