Tariff Revenue=Tariff per Unit×Quantity of Imports after TariffTariff Revenue equals Tariff per Unit cross Quantity of Imports after Tariff 3.2 Exchange Rates
HL students must calculate costs, revenues, and profit. This is often where marks are lost due to simple arithmetic errors.
For example, the booklet lists:
Possessing this repackaged formula list is only half the battle. To maximize your score on Paper 3, incorporate these study habits:
), or quantity units (million units, kg) as dictated by the prompt. ib economics hl formula booklet repack
TOT = (120 / 110) × 100 = 109.1. Favorable.
Social Surplus=Consumer Surplus+Producer SurplusSocial Surplus equals Consumer Surplus plus Producer Surplus 1.3 Theory of the Firm (Costs, Revenues, and Profit)
YED=%ΔQd%ΔY(where Y=Income)YED equals the fraction with numerator % cap delta cap Q sub d and denominator % cap delta cap Y end-fraction space open paren where cap Y equals Income close paren : Normal good : Necessity (Income inelastic normal good) : Luxury (Income elastic normal good) : Inferior good Price Elasticity of Supply (PES) Formula:
In essence, to "repack" the IB Economics HL formula booklet means to . It’s about transforming a static list of equations into a dynamic, personalized toolkit that you can call upon with speed and confidence in an exam setting. To maximize your score on Paper 3, incorporate
Growth Rate=Real GDPYear 2−Real GDPYear 1Real GDPYear 1×100Growth Rate equals the fraction with numerator Real GDP sub Year 2 end-sub minus Real GDP sub Year 1 end-sub and denominator Real GDP sub Year 1 end-sub end-fraction cross 100 Inflation and Unemployment Metrics
Elasticity measures the responsiveness of consumers or producers to changes in market conditions. Price Elasticity of Demand (PED)
Paper 3 always ends with a recommendation question. Use your calculated values as explicit evidence to justify your macroeconomic or microeconomic policy suggestions.
Use a four-quadrant chart to visualize these relationships. Color-code each elasticity type and include real-world products for each category (e.g., airline tickets for elastic, insulin for inelastic). Review the formula variations used for calculating PED when given two price and quantity points: quantity = 1000 units.
PS=12×Base×(Market Price−Minimum Price Producers Will Accept)PS equals one-half cross Base cross open paren Market Price minus Minimum Price Producers Will Accept close paren Total benefit to society.
Write out the raw algebraic equation before inserting any values. This guarantees partial working marks.
Given: PED for cigarettes = –0.4. Current price = $10, quantity = 1000 units. Government imposes a $2 specific tax. What is the new quantity demanded?