Diagrams in IB Economics are a very important indicator to the examiner to quickly check if you know what you're doing. You can sound as smart as you want - mess up the diagrams, or don't use them, and you're not going to do well. In short answers, one to two diagrams will suffice, but longer answers may require three to four diagrams, depending on the length of your answer. You want to clearly label them, and then use them to demonstrate the effect of the question's suggested policy. You explain the changes occurring on the diagram, and then use those visual guidelines to help support your argument. Think of diagrams as a visual demonstration of the policy's effect. Be as detailed as possible. Diagrams should take up a quarter of a page, their description another quarter to another half.