Theme 2 formulas Flashcards
1
Q
What is the formula for Price Elasticity of Demand
A
% Change in quantity demanded /
% change in price
2
Q
What is the formula for Income Elasticity of Demand
A
% change in demand /
% income change
3
Q
What is the formula for Capacity Utilisation
A
Actual Output /
Maximum possible output
4
Q
What is the formula for Average Costs
A
Total Costs /
Total Output
5
Q
What is the formula for Aggregate Demand
A
C + I + G + (X - M)
