Measures the relative price of a country's exports compared to its imports.
To maximize your performance, always label axes and curves clearly, as half-completed diagrams lose marks. . Prioritize physical for active learning to better internalize the content. For a structured study plan, combine your self-made formula booklet with targeted practice on past Paper 3 questions to ensure you’re fully prepared.
Interpretation: Positive = Substitutes; Negative = Complements. ib economics hl formula booklet
). Practice shifting these linear equations mathematically when a tax or subsidy is introduced.
By the law of demand, PED is always negative. However, economists express it as an absolute value when discussing elasticity. If a question asks for the value, state the negative number but interpret its absolute magnitude. Measures the relative price of a country's exports
Do not look at the booklet for the first time during mock exams. Annotate a working copy during your revision, but practice with a completely clean version to simulate real test conditions.
Elasticities measure the responsiveness of one variable (e.g., quantity demanded) to changes in another (e.g., price). These are fundamental formulas for Paper 2 and Paper 3. PED is always negative.
Macroeconomic formulas allow you to measure the health and performance of an entire economy. These appear frequently in Papers 2 and 3.
If you are currently enrolled in IB Economics at the Higher Level (HL), you have likely heard a mythical whisper from your seniors: “The Formula Booklet is your best friend.” But for many students, the official IB Economics HL Formula Booklet (published by the IBO) feels more like a cryptic puzzle than a lifesaver.