Calculations Flashcards
1
Q
What is the equation for Elasticity of supply?
A
n = dQs/dP × P/Qs
2
Q
What is the equation of elasticity of demand?
A
E = dQd/dP x P/Qd
*always negative
3
Q
What is the equation for Consumer constraint optimisation?
A
MUx/Px = MUy/Py
4
Q
What is the equation for income elasticity?
A
dQ/dY x Y/Q
5
Q
What is the equation of Marginal rate of technical substitution
A
MRTS = -(MPL/MPk)
6
Q
What is the cobb-douglas production function?
A
q = f(K,L) = A L^a K^b
