(Price Elasticity of Supply): % Δ in Qty Supplied / % Δ in Price Costs and Revenues Total Revenue (TR) : Price × Quantity Average Revenue (AR) : TR / Q (Always equals Price) Marginal Revenue (MR) : ΔTR / ΔQ Profit (π) : Total Revenue - Total Cost Average Cost (AC) : Total Cost / Q Marginal Cost (MC) : ΔTC / ΔQ 🌍 Macroeconomics Formulas These equations measure the health of a national economy. Economic Activity GDP (Expenditure Approach) : C + I + G + (X - M) C : Consumption I : Investment G : Government Spending X-M : Net Exports
(Consumer Price Index): (Value of basket in specific year / Value of basket in base year) × 100 Inflation Rate : [(New CPI - Old CPI) / Old CPI] × 100 Unemployment Rate : (Unemployed / Labor Force) × 100 🤝 International and Development Formulas Focus on trade balances and exchange rates.
Elasticities measure responsiveness to changes in price, income, or related goods. The general rule of thumb for any elasticity formula is: Price Elasticity of Demand (PED):
(Economic profit is zero, but all opportunity costs are covered). Occurs when Subnormal Profit (Loss): Occurs when 3. Market Equilibrium Rules for Firms
Unlike IB Math or Physics, the International Baccalaureate does not provide an official formula booklet for IB Economics HL exams ib economics hl formula booklet
. For example, it shows you the PED formula, but you must remember that a result > 1 is elastic, and < 1 is inelastic. 2. The "Paper 3" Power Players
This is a deep guide to the .
Profit (π)=TR−TCProfit open paren pi close paren equals TR minus TC Occurs when
Note: Always ignore the negative sign; treat PED as an absolute value. If , demand is elastic. (Price Elasticity of Supply): % Δ in Qty
: Devaluation/depreciation will improve the trade balance if Taxation : Average Tax Rate : Marginal Tax Rate : Exam Performance Tips
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Elasticities measure responsiveness to changes in price, income, or related goods. Price Elasticity of Demand (PED) Formula: Percentage Change Formula:
If you are in the first cohort of the new syllabus (first exams 2025), note the following changes to the formula booklet: The general rule of thumb for any elasticity
Do not just memorize
The booklet does not tell you to check units. Paper 3 is infamous for mixing:
The area below the demand curve and above the market price. On a linear graph, calculate it as the area of a triangle:
Microeconomics contains the highest density of mathematical applications in the IB Economics syllabus. You will be tested on elasticities, consumer and producer surplus, government interventions, and complex theory of the firm costs. Elasticities of Demand and Supply
ΔTotal Revenue (TR)ΔQuantity (Q)the fraction with numerator cap delta Total Revenue (TR) and denominator cap delta Quantity (Q) end-fraction Profit Metrics and Rules Profit Maximization Rule: Revenue Maximization Rule: Allocative Efficiency Rule: Productive Efficiency Rule: Production occurs at minimum Average Total Cost (ATC)Average Total Cost (ATC) 3. Macroeconomics Formulas