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Paper 3 question on behavioural economics, PED and negative externalities

This section includes an IB paper 3 style examination question and markscheme. Students are required to answer 2 questions when they are completing paper 3 and they have 105 minutes to do this.Airlines try to squeeze as much revenue as they can out of each passenger they sell to. Airlines set ticket prices to increase revenues by varying prices at different times of the year and times of the day. When EasyJet sets its...

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