IB Economics Diagrams for Exam Prep |UPDATED|

IB Economics Diagrams for Exam Prep |UPDATED| Negative Externalities The government will increase MPC to match MSC. Effects of indirect taxes on consumer and producer surplus Market Demand Movement on curve vs. shift of curve (demand/supply same concept) Market supply Market equilibrium Consumer/producer surplus in competitive market How does a change in demand single price change? Inelastic PEDcurve Elastic PED curve Unit elasticity (PED=1) Varying PED along a demand curve As you get towards the right of the curve for example, the change in percentage demand is much lower than the percentage change in price. (E.g.) Price goes from 0.1- 0.2=50% increase. Qd goes from 50-49 = approx.. 0.02 decrease. This gives inelastic value like on curve. How government revenue is ef