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    Formula Microeconomic

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    Prasaantiny
    This document defines key economic concepts related to demand, supply, costs, and revenue. It provides the formulas to calculate price elasticity of demand, income elasticity of demand, cross elasticity of demand, price elasticity of supply, marginal utility, average product of labour, marginal product of labour, marginal cost, average cost, average fixed cost, average variable cost, long-run average cost, long-run marginal cost, marginal revenue, profit and loss. These concepts and formulas are fundamental to understanding how markets work.

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    Formula Microeconomic

    Uploaded by

    Prasaantiny
    7 views1 page
    This document defines key economic concepts related to demand, supply, costs, and revenue. It provides the formulas to calculate price elasticity of demand, income elasticity of demand, cross elasticity of demand, price elasticity of supply, marginal utility, average product of labour, marginal product of labour, marginal cost, average cost, average fixed cost, average variable cost, long-run average cost, long-run marginal cost, marginal revenue, profit and loss. These concepts and formulas are fundamental to understanding how markets work.

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    FORMULA MICROECONOMIC

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    This document defines key economic concepts related to demand, supply, costs, and revenue. It provides the formulas to calculate price elasticity of demand, income elasticity of demand, cross elasticity of demand, price elasticity of supply, marginal utility, average product of labour, marginal product of labour, marginal cost, average cost, average fixed cost, average variable cost, long-run average cost, long-run marginal cost, marginal revenue, profit and loss. These concepts and formulas are fundamental to understanding how markets work.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    7 views1 page

    Formula Microeconomic

    Uploaded by

    Prasaantiny
    This document defines key economic concepts related to demand, supply, costs, and revenue. It provides the formulas to calculate price elasticity of demand, income elasticity of demand, cross elasticity of demand, price elasticity of supply, marginal utility, average product of labour, marginal product of labour, marginal cost, average cost, average fixed cost, average variable cost, long-run average cost, long-run marginal cost, marginal revenue, profit and loss. These concepts and formulas are fundamental to understanding how markets work.

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    𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 

    𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝐷𝑒𝑚𝑎𝑛𝑑𝑒𝑑 ∆𝑄𝑥
    Price Elasticity Of Demand (Ed) = 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑃𝑟𝑖𝑐𝑒 𝐸𝑑 = ∆𝑃𝑥

    𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝐷𝑒𝑚𝑎𝑛𝑑𝑒𝑑 ∆𝑄𝑥
    Income Elasticity Of Demand (Ey) = 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝐼𝑛𝑐𝑜𝑚𝑒 𝐸𝑦 = ∆𝑌
    𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝐷𝑒𝑚𝑎𝑛𝑑𝑒𝑑 ∆𝑄𝑥
    Cross Elasticity Of Demand (Exy) = 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝑂𝑡ℎ𝑒𝑟𝑠 𝐺𝑜𝑜𝑑𝑠 𝐸𝑥𝑦 = ∆𝑃𝑦
    𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑆𝑢𝑝𝑝𝑙𝑖𝑒𝑑  ∆𝑄𝑠
    Price Elasticity Of Supply (Es) = 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑃𝑟𝑖𝑐𝑒 𝐸𝑠 = ∆𝑃𝑥

    Formula for find change in Price, Quantiti, Cost, Revenue Change =


    𝑁𝑒𝑤−𝐼𝑛𝑡𝑖𝑎𝑙
    𝐼𝑛𝑡𝑖𝑎𝑙

    𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑇𝑜𝑡𝑎𝑙 𝑈𝑡𝑖𝑙𝑖𝑡𝑦 ∆𝑇𝑈
    Marginal Utility (MU) = 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑂𝑓 𝐺𝑜𝑜𝑑
    𝑀𝑈 =   ∆𝑄

    𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝑇𝑃
    Average Product of Labour (APL) = 𝐿𝑎𝑏𝑜𝑢𝑟
    𝐴𝑃𝐿 = 𝐿

    𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 ∆𝑇𝑃


    Marginal Product of Labour (MPL) = 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑂𝑓 𝐿𝑎𝑏𝑜𝑢𝑟
    𝑀𝑃𝐿 = ∆𝐿

    Total Cost = Total Fixed Cost + Total Variable Cost TC = TFC + TVC
    𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑇𝑜𝑡𝑎𝑙 𝑈𝑡𝑖𝑙𝑖𝑡𝑦 ∆𝑇𝐶
    Marginal Cost (MC) = 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑂𝑓 𝐺𝑜𝑜𝑑
    𝑀𝐶 = ∆𝑄

    𝑇𝑜𝑡𝑎𝑙 𝑐𝑂𝑆𝑇 𝑇𝐶
    Average Cost (AC) = 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑂𝑓 𝐺𝑜𝑜𝑑
    𝐴𝐶 =   𝑄

    𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡 𝑇𝐹𝐶


    Average Fixed Cost (AFC) = 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑂𝑓 𝐺𝑜𝑜𝑑
    𝐴𝐹𝐶 =   𝑄

    𝑇𝑜𝑡𝑎𝑙 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡 𝑇𝑉𝐶


    Average Variable Cost (AVC) = 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑂𝑓 𝐺𝑜𝑜𝑑
    𝐴𝑉𝐶 =   𝑄

    𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 𝐿𝑜𝑛𝑔 𝑅𝑢𝑛 𝐿𝑅𝑇𝐶


    Long-Run Average Cost (LARC) = 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑂𝑓 𝐺𝑜𝑜𝑑
    𝐿𝐴𝑅𝐶 =   𝑄

    𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 𝐿𝑜𝑛𝑔 𝑅𝑢𝑛 ∆𝐿𝑅𝑇𝐶


    Long-Run Marrginal Cost (LRMC) = 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑂𝑓 𝐺𝑜𝑜𝑑
    𝐿𝑅𝑀𝐶 = ∆𝑄

    Total Revenue = Price X Quantity =TR = P*Q


    𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 ∆𝑇𝑅
    Marginal Revenue (MR) = 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑂𝑓 𝐺𝑜𝑜𝑑
    𝑀𝑅 = ∆𝑄

    𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 𝑇𝐶
    Average Cost (AC) = 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑂𝑓 𝐺𝑜𝑜𝑑
    𝐴𝐶 =   𝑄

    Total Revenue (TR) - Total Cost (TC) = Profit/Loss TR - TC = Profit/ Loss

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