Formulas

Question 1

Price Elasticity of Demand (PED)

Answer 1

Percentage change in quantity demand
/
Percentage change in price

Question 2

Income Elasticity of Demand (YED)

Answer 2

Percentage change in quantity demand
/
Percentage change in income

Question 3

Cross Elasticity of Demand (XED)

Answer 3

Percentage change in quantity demand of A
/
Percentage change in price of B

Question 4

Price Elasticity of Supply (PES)

Answer 4

Percentage change in quantity supplied
/
Percentage change in price

Question 5

Total Revenue

Answer 5

Quantity * Price

Question 6

Average Revenue

Answer 6

Total Revenue
/
Output

Question 7

Marginal Revenue

Answer 7

Change in total revenue
/
Change in output

Question 8

N Firm Concentration Ratio

Answer 8

(Total sales of n firms / total size of market) * 100

Question 9

Price Regulation

Answer 9

RPI - X
RPI - X + K

Question 10

Indices

Answer 10

(New figure / base figure) * 100

Question 11

Fisher Equation

Answer 11

MV = PT
Money Supply * Speed = Price Level * Transactions

Question 12

Inflation

Answer 12

(New figure - old figure)
/ old figure * 100%

Question 13

Marginal Propensity to Consume

Answer 13

Change in consumption / change in income

Question 14

Average Propensity to Consume

Answer 14

Total consumption / total income

Question 15

Marginal Propensity to Save

Answer 15

Change in savings / change in income

Question 16

Average Propensity to Save

Answer 16

Total savings / total income

Question 17

Multiplier

Answer 17

Multiplier = 1/1-MPC = 1/MPW