IB DP Microeconomics · SL & HL
Price elasticity of demand
Drag the point along the demand curve (or use the slider). Watch how |PED| changes along a straight line — and what that does to total revenue, shown as the shaded rectangle. Working from numbers instead? Use the elasticity calculator.
- |PED|
- 3.00
- Demand is
- elastic
- Quantity
- 30
- Total revenue (P×Q)
- 1350
Demand is elastic here — raising the price lowers total revenue.
HL: on a straight-line demand curve |PED| falls as you move down the curve — revenue peaks where |PED| = 1 (here, at price 30).