IB Economics 2.5.1: Price Elasticity of Demand (PED) with Total Revenue & Determinants

Описание: Welcome to IB DP Economics Unit 2.5.1: Elasticities! This is your complete guide to Price Elasticity of Demand (PED). Learn how to calculate PED, understand its determinants, and analyze the crucial relationship between PED and Total Revenue. Essential for both IB Economics HL and SL students mastering diagrams and quantitative analysis!

In this complete lesson, you will master Price Elasticity of Demand (PED):
00:00 - Intro
00:31 - Explain the concept of elasticity
01:30 - Draw diagrams for a relatively elastic and inelastic demand
02:40 - Draw diagrams showing the range of values for PED including:
relatively elastic and inelastic demand
constant values for perfectly elastic demand, perfectly inelastic demand, and unitary PED
05:26 - Explain the formula for price elasticity of demand
08:39 - Identify the various degrees and range of values for PED
11:08 - Analyze the determinants of PED:
number and closeness of substitutes
degree of necessity
proportion of income spent on the good
time
13:55 - Explain the relationship between PED and total revenue
14:28 - Draw a diagram to show how total revenue changes in response to a price change depending on elastic or inelastic demand
16:44 - Discuss the importance of PED for firms and government decision-making
17:30 - (HL) Analyze the reasons why primary commodities usually have a lower PED than manufactured products
20:20 - (HL) Explain and illustrate in a diagram changing PED along a straight-line downward sloping demand curve

PED is a key skill for Paper 2 data-response questions and Paper 3 calculations! Use this video to practice your diagrams and mathematical skills.

⚡️ Quick Review - Lightning Lesson:
   • DP Econ - 2.5.1 Lightning Lesson - Price E...  

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IB Economics HL/SL video lesson