IB Economics Diagrams
Master essential economic diagrams with detailed explanations and examples
The fundamental diagram showing the relationship between demand and supply in a competitive market, determining equilibrium price and quantity.
A supply and demand diagram showing the effect of an indirect tax on a good with inelastic demand. The consumer bears a larger share of the tax burden.
A production possibility curve illustrating the concept of opportunity cost and the trade-offs between producing two goods: mangos and bananas.
A PPC diagram showing different levels of production efficiency and economic feasibility using combinations of consumer and capital goods.
A model illustrating how money, goods, services, and resources flow between households, firms, the government, the financial sector, and the foreign sector in an economy.
A refined circular flow model highlighting the roles of injections and withdrawals in determining national income and economic equilibrium.
A diagram illustrating consumer surplus and producer surplus in a competitive market, showing the benefits to buyers and sellers at the market equilibrium.
A diagram illustrating different types of price elasticity of demand: perfectly inelastic, perfectly elastic, and unitary elastic demand curves.
A diagram illustrating different types of price elasticity of supply: perfectly inelastic, perfectly elastic, and unitary elastic supply curves.
The Engel Curve illustrates how the quantity demanded of a good changes as consumer income changes, distinguishing between normal and inferior goods.
A diagram showing the effects of a price floor set above equilibrium, resulting in excess supply and welfare loss in the market.
A diagram showing the effects of a price ceiling set below the market equilibrium price, resulting in excess demand and welfare loss.
A diagram showing the effect of a government subsidy on a market, resulting in a downward shift of the supply curve, lower price for consumers, and increased quantity supplied.
A diagram showing the effects of an indirect tax on a market, resulting in a leftward shift of the supply curve, higher price for consumers, lower quantity traded, and a reduction in market efficiency.
A diagram illustrating a negative externality of production, where the marginal social cost (MSC) exceeds the marginal private cost (MPC), leading to overproduction and welfare loss.
A diagram illustrating a positive externality of production, where the marginal social cost (MSC) is lower than the marginal private cost (MPC), leading to underproduction and welfare loss.
A diagram illustrating a positive externality of consumption, where the marginal social benefit (MSB) exceeds the marginal private benefit (MPB), leading to underconsumption and welfare loss.
A diagram illustrating a perfectly competitive firm's short-run position where price equals average revenue but is below average total cost, resulting in a loss.
A diagram illustrating a perfectly competitive firm in long-run equilibrium, where economic profit is zero, and the firm is operating at its most efficient scale.
A diagram illustrating a firm in monopolistic competition in long-run equilibrium, where it earns normal profit. The ATC curve is tangent to the demand curve (AR), meaning total revenue equals total cost.
A diagram illustrating a monopolist earning abnormal profit. The firm restricts output to Qm where MC = MR and sets price Pm, resulting in welfare loss and consumer surplus loss compared to a perfectly competitive outcome.
A diagram illustrating a natural monopoly regulated to achieve allocative efficiency through subsidies. It highlights supernormal and subabnormal profit regions, along with the required subsidy to sustain production at the socially optimal quantity.