Equations Flashcards
1
Q
Price of Elasticity of Demands
A
Δ%Qdemanded ΔQ/QAVE
———————— = —————–
Δ%P demanded ΔP/PAVE
2
Q
Inelastic
A
-1
3
Q
Elastic
A
+1
4
Q
Unit Elastic
A
1
5
Q
Total Revenue
A
P of good X Q sold
6
Q
Income Elastic of Demand
A
% in income
7
Q
Cross elasticity of demand
A
%Δ of substitutes/ components
8
Q
Consumer surplus
A
Q bought
9
Q
Supply curve =
A
MC curve
10
Q
Economic profit
A
total revenue - total cost
11
Q
Average Total cost (ATC)
A
Q or output
12
Q
Average Variable Cost (AVC)
A
TVC (total variable cost) TFC TVC
———————————— or ——- + ——-
Q Q Q
13
Q
Average Fixed Cost (AFC)
A
ATC - AVC
14
Q
Total Cost (TC)
A
(AVC+AFC) x output (Q)
15
Q
Total Variable Cost (TVC)
A
AVC x Output
