Microeconomics Equations Flashcards
1
Q
What is the equation for productivity?
A
Total Output / Total Number of Workers = Productivity
2
Q
What is the equation for PED?
A
% Δ quantity supplied / % Δ price = PED
3
Q
What is the equation for income elasticity of demand / YED?
A
%Δ quantity demanded / %Δ income = Income Elasticity of Demand or YED
4
Q
What is the equation for cross elasticity of demand / XED?
A
%Δ quantity demand of Good A / %Δ in price of Good B = XED
5
Q
What is the equation for Variable Costs of Production?
A
Total cost = Total fixed cost + Total variable cost
Average total cost = Average total cost + Average total variable cost
TC = TFC + TVC
ATC = AFC + AVC
6
Q
What is the equation for average returns of labour?
A
Total Output / Total number of workers
