quick study Flashcards
1
Q
how to calculate consumer burden
A
after tax - before tax
2
Q
how to calculate producer burden
A
first find Ps = Pt - t, then calculate PB = Pe - Ps
3
Q
how to calculate government tax revenue
A
tax = t * Qt
4
Q
how to calculate income elasticity of demand (em)
A
em = (change Qd/change M)* (M/Qd)
positive = normal, neg = inferior
normal goods = more than 1 = lux, less than 1 = necessity
5
Q
how to calculate cross price elasticity of demand
A
exy = (change Qdx/Change Py) * (Py/Qdx)
negative = complements, positive = subs
6
Q
how to calculate price elasticity
A
ep = |(change Qdx/change Px) * px/Qdx)|
7
Q
elasticity
A
steeper demand curve = more inelastic
flatter demand curve = more elastic
