PED
PED = (% Δ Q_d) / (% Δ P) IB Diploma Programme 2026
📊 IBDP Economics Formula Sheet
Micro + macro indicators and HL development equations for quick referencing across Paper 1 essays and Paper 2/3 data sets.
Elasticities Multiplier HL Development
Our formula sheets are free to download — save this one as PDF for offline revision.
Aligned with the latest 2026 syllabus and board specifications. This sheet is prepared to match your exam board’s official specifications for the 2026 exam series.
Connect Diagrams to Calculations
Use these expressions to justify elasticity statements, link AD/AS shifts to macro targets, and evaluate policy outcomes quantitatively.
📈
Micro + macro pairings
💱
Exchange & BOP references
🏦
Policy evaluation cues
🌍
HL development metrics
Elasticity & consumer/producer surplus
Price and income responses; welfare triangles.
PES
PES = (% Δ Q_s) / (% Δ P) YED
YED = (% Δ Q_d) / (% Δ income) XED
XED = (% Δ Q_A) / (% Δ P_B) Consumer surplus (linear approx.)
Area under demand above price.
CS = ½ × Q × (P_max − P) Producer surplus
Area above supply below price.
PS area from supply curve geometry Topic Focus
Diagrams
- Shifts in demand/supply vs movements along curves.
- Incidence of tax depends on relative elasticities.
Macro aggregates & growth
National income accounting and growth.
GDP (expenditure)
Y = C + I + G + (X − M) Real vs nominal
Real GDP = Nominal GDP / (GDP deflator / 100) Multiplier (simple)
MPC marginal propensity to consume.
k = 1 / (1 − MPC) Harrod–Domar idea
Growth and savings/capital–output ratio.
g ≈ s / v (conceptual) Topic Focus
Policy
- Fiscal vs monetary levers; lags and crowding out in evaluation.
- Compare actual vs potential output (output gap).
Inflation, unemployment & Phillips curve
Indicators and short-run trade-offs.
Inflation rate
π_t ≈ (CPI_t − CPI_{t−1}) / CPI_{t−1} × 100% Unemployment rate
U% = (unemployed / labour force) × 100% Fisher (approx.)
real interest ≈ nominal − expected inflation Topic Focus
Expectations
- Adaptive vs rational expectations change policy effectiveness.
- NAIRU / natural rate in long-run Phillips interpretation.
International & exchange rates
Trade and balance of payments.
Balance of payments
CA + KA + FA = 0 (by accounting identity) Real exchange rate
RER = (e × P_foreign) / P_home Terms of trade
ToT = (price index exports / price index imports) × 100 Topic Focus
Open economy
- Marshall–Lerner: sum of import/export elasticities > 1 for depreciation to improve trade balance (ceteris paribus).
- J-curve: short vs long run after exchange rate shock.
Market structures (reference)
Profit maximisation rule.
Profit max
Produce where MR = MC Markup (simple)
Monopoly power.
P − MC / P = −1 / PED (related) Topic Focus
Evaluation
- Compare productive/allocative/dynamic efficiency across perfect competition, monopoly, oligopoly.
- Game theory: dominant strategy vs Nash equilibrium.
How to Use This Formula Sheet
Boost your Cambridge exam confidence with these proven study strategies from our tutoring experts.
🧾
State Formula Then Apply
Write the equation before substituting numbers/percentages to show method on Paper 2/3.
🧠
Link Values to Evaluation
After calculating multiplier or elasticity, explain what it implies for policy effectiveness.
🌍
Use Real Economies
Attach country examples (e.g., Singapore, UK) when discussing BOP or development metrics to secure application marks.
Formula sheet FAQ
Quick answers about this free PDF, how to use it for exam revision, and how it relates to your official syllabus.
Is the IBDP Economics Formula Sheet 2026 free to download as a PDF?
Yes. This Tutopiya formula sheet is free to use and you can download it as a PDF from this page for offline revision. There is no payment or account required for the PDF download.
What Economics topics and equations does this formula sheet cover?
This page groups key Economics formulas in one place for revision. Elasticities, cost/revenue relationships, multiplier, balance of payments, Phillips Curve, and HL development indicators for the 2026 IB Economics exams. Always cross-check with your official syllabus and past papers for your exam session.
Can I use this instead of the official exam formula booklet in the exam?
No. In the exam you must follow only what your exam board allows in the hall—usually the official formula booklet or data sheet where provided. This page is a revision and teaching aid, not a replacement for board-issued materials.
Who is this formula sheet for (Upper Secondary)?
It is written for students preparing for assessments at Upper Secondary in Economics, including classroom revision, homework support, and independent study. Teachers and tutors can also share it as a quick reference.
How should I revise with this formula sheet?
Work through past paper questions, quote the correct formula before substituting values, and check units and notation every time. Pair this sheet with timed practice and mark schemes so you see how examiners expect working to be set out.
Where can I get more help with Economics revision?
Explore Tutopiya’s study tools, past paper finder, and revision checklists linked from our tools hub, or book a trial lesson with a subject specialist for personalised support alongside this formula reference.
Need IB Economics Essay Coaching?
Get help combining calculations, diagrams, and policy evaluation within the 25-mark structure.
More Tutopiya study tools
Pair this formula sheet with past papers, revision checklists, and planners — all free on our study tools hub.
- All study tools Browse the full hub: calculators, planners, past papers, and more.
- Past paper finder Search past papers by board, subject, and year.
- Revision checklists Topic-by-topic checklists for IGCSE & A Level (2026 syllabi).
- Study planner Build schedules and stay on track before exams.
- Past paper error log Log mistakes from papers and review them systematically.
- Score tracker Track marks and grades across past paper sittings.
- Topic & paper planner Plan revision by topic and tie it to past papers.
- GPA calculator Convert IGCSE, GCSE, and A Level grades to GPA-style summaries.
- The Tutopiya Test Quick diagnostic to see where you stand.
- IGCSE resources Practice questions, notes, and guides for Cambridge & Edexcel IGCSE.
Content aligned with the 2020 IB Economics syllabus (first assessment 2022) covering SL and HL components.
Always specify the time period and units (%, currency) when quoting macroeconomic indicators.