# Assessment map

### Unit 2.5-2.6: Elasticity

This page provides a map of the various assessments included in the unit, including short answers responses, essays and areas for discussion.  I have included a section A and section B blank essay template which will help your classes prepare their essay responses.

#### Unit 2.5: Price elasticity of demand (PED)

 Syllabus Assessment Understand the concept of price elasticity of demand, as the responsiveness of quantity demanded to a change in price, along a given demand curve Short answer activities available at: Price elasticity of demand Determinants of PED—number and closeness of substitutes, degree of necessity, proportion of income spent on the good, time e.t.c.Relationship between PED and total revenue Determinants of PED activity, available at: Determinants of price elasticity Calculate PED using the equation percentage change in quantity demanded / percentage change in price (HL only) Mathematical calculations exercise: A mathematical note about elasticity Using diagrams to explain the values and concepts of PED, price inelastic demand, unit elastic demand, perfectly elastic demand and perfectly inelastic demand PED elasticity exercise (ranking goods by PED elasticity) Degrees of PED—theoretical range of values for PED Short answer activities on page: Unit 2.5: Price elasticity of demand Changing PED along a straight line downward sloping demand curve (HL only) Mathematical calculations exercise: A mathematical note about elasticity Examine the role of PED for firms in making decisions regarding price changes and their effect on total revenue Essay question, available at: Demand and supply questionsRevision exercise available as a PDF file at: Elasticity practiseApplying PED, available at: PED elasticity and sales revenue? Explain why the PED for many primary commodities is relatively low and the PED for manufactured products is relatively high (HL only) Homework essay on elasticity, available at: Elasticity question Examine the significance of PED for government in relation to indirect taxes Essay question, available at: Demand and supply questions
##### Unit 2.5: Price elasticity of supply (PES)
 Syllabus Assessment Understand the concept of price elasticity of supply, as the responsiveness of quantity supplied to a change in price, along a given supply curve Short answer activities available at: Price elasticity of supply Calculate PES using the equation percentage change in quantity supply / percentage change in price (HL only) PES activities, available at: Unit 2.6: Price elasticity of supply Mathematical calculations for PES, available at: Types of elasticity practise Using diagrams to explain the values and concepts of PES, price inelastic supply, unit elastic supply, perfectly elastic supply and perfectly inelastic supply PES essay question on perfectly supply elasticity, available as a PDF at: Stadium questionShort answer questions, available at: PES elasticity Understanding the determinants of PES, e.g. the including time, mobility of factors of production, unused capacity and ability to store stocks Reflection activity on page: Price elasticity of supply Explain why the PES for primary commodities is relatively low and the PES for manufactured products is relatively high (HL only) Practise essay questions, available as activity 6 at: Price elasticity of supply

Unit 2.5: Income elasticity of demand (YED)

 Syllabus Assessment An understanding of income elasticity of demand, as the responsiveness of demand (and hence a shifting demand curve) to a change in income Short answer activities, available at: Income elasticity of demand (YED) Calculate YED using the equation percentage change in quantity demanded /percentage change in income (HL only) Short answer activities, available at: Income elasticity of demand (YED) An understanding of why normal goods have a positive value of YED and inferior goods have a negative value of YED.  A recognition of the difference between the YED of necessity (income inelastic) goods and luxury (income elastic) goods and services Short answer activities, available at: Income elasticity of demand (YED) The implications for the producers of primary products with low YED and the producers of manufactured products and services with more elastic YED (HL only) Practise essay question, available at: Demand and supply questions

Blank essay template available at: Section A essay template Section B essay template

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