Mixed formulas Flashcards
1
Q
BASE INDEX
A
(Year price/ index price) X 100
2
Q
Price elasticity of demand (PED)
A
(% change in quantity demanded) / (% change in price)
3
Q
Income elasticity of demand (YED)
A
(% change in quantity demanded) / (% change in income)
4
Q
Cross elasticity of demand (XED)
A
(% change in quantity demanded for good X/good1) / (% change in price for good Y/ good 2)
5
Q
Percentage change for elasticities
A
((NEW - OLD) / OLD) X 100
ALL DIVIDED BY
((NEW - OLD) / OLD) X 100
6
Q
Price elasticity of supply (PES)
A
(% change quantity supplied) / (% change in price)
7
Q
Price equilibrium
A
D = S (DEMAND = SUPPLY)
