IB skill practice

Calculate and interpret price elasticity

Economics SL skill with original exam-style diagram and data-response seeds.

Paper 1, Paper 2 5 marks Difficulty 2

Calculate PED

A local Auckland housing policy extract reports that price rises by 16% and quantity demanded falls by 12%. Calculate the price elasticity of demand using absolute value. Enter the answer and choose the interpretation that best matches the economic evidence.

Worked practice: economic evidence and answer

Identify the economic evidence first, then state the result and interpretation.