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Paper 3 question on behavioural economics, PED and negative externalities

IB Economics Paper 3 includes two compulsory questions. This is a sample Paper 3 question. The time allowed for Paper 3 is 105 minutes, so students should spend 52.5 minutes on each question. This Paper 3 style question is on behavioural economics, PED and negative externalities.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...

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