Formulas Flashcards
1
Q
Price elasticity of demand
A
Ed= (dq/qaverage)/(dp/paverage) Ed= d%q/ d%y
2
Q
Cost function of total costs
A
TC=TFC+TVC
TC=TFC+ w*L
3
Q
Cost function of average variable costs
A
AVC= TVC/ q AVC= w*L/q
4
Q
Income elasticity of demand
A
Eincome= (dq/q)/(dy/y) Eincome= d%q/d%y
5
Q
Cost function of marginal cost
A
MC=dTC/dq
MC=dTVC/dq
6
Q
Budget equation
A
Y= p1q1+p2q2
7
Q
Total Revenue
A
TR= p*q
8
Q
Total profit
A
TP= TR-TC
9
Q
Keynesian model
A
C+G+I+X-M
