Latest Activity In Study Groups

Join Your Study Groups

VU Past Papers, MCQs and More

We non-commercial site working hard since 2009 to facilitate learning Read More. We can't keep up without your support. Donate.

ECO401 Economics Important Formulas For Lecture No 01 to Lecture No 02
ECO401 Economics Formula
Lesson 1-45
 
Price Elasticity of Demand=P€d = Percentage change in Quantity Demanded/ Percentage change in Price
 
Price Elasticity of supply=P€s = Percentage change in Quantity Supplied/ Percentage change in Price
  
 
Income Elasticity of Demand: Price Elasticity of Supply: Y€d = Percentage change in Quantity demanded/ Percentage change in Income
 
Cross-Price Elasticity of Demand: Pb€da = Percentage change in Demand for good a/ Percentage change in Price of good b
 
The quadratic demand function: Qd = 60 – 15P + P2
 
The formula of elasticity = (dQ / dP) (P/Q)
 
MARGINAL RATE OF SUBSTITUTION= MRS= dY = MUX
                                                                                dX     MUY
Profit=TR-TC
 
Average physical product =APP = TPPF/QF
 
Marginal physical product= ΔTPPF/ΔQF or MPPx=MPPL
                                                                         PX        PL
 
MARGINAL RATE OF TECHNICAL SUBSTITUTION= MRTS = Δ K/ Δ L
 
Total Cost (TC)= FC + VC
 
Average variable cost (AVC) = TVC/Q
 
Average fixed cost (AFC)= TFC/Q
 
MARGINAL COST (MC)= ΔTC/ΔQ
 
Total revenue=TR = P x Q.
   
Average revenue= AR = TR/Q
 
Marginal revenue= ΔTR/ΔQ
 
Slope of AR = dAR / dQ
 
Slope of MR = dMR / dQ
 
Net present value = PV – Purchase cost
   
Value added or GDP: Value of transaction
 
GDP = Sum of the value added by each of the firms
 
Growth rate of per capita income = Growth rate of total output - Growth rate of population
    
GDP Deflator = Nominal GDP / Real GDP
 
NNP = GNP – Depreciation allowance
    
GNP = GDP + Net factor incomes from abroad
 
NDP = GDP – Depreciation allowance
    
GDP at factor cost = GDP at market price – Indirect taxes
 
Per capita income= national income/ Total population of that country
   
NNP = GNP – Depreciation allowance
 
Real GDP year a = Nominal GDP year a X (Price Index base year / Price Index year a)
 
Growth rate in nominal GDP = Nominal GDP in year2- Nominal GDP in year1
 
AD = C + I + G + (X-M)
 
AD = AS, C + S + T = C + I + G + X – M
 
Y = AD = AS
  
Income = Expenditure = Output
 
Withdrawal = Injection= S + T + M = I + G + X
 
Marginal Propensity to Consume (MPC)= 1 – MPS or ΔC / ΔYd
 
Average propensity to consume (APC)= 1 – APS or C / Yd
 
Marginal propensity to save= MPS = 1 – MPC or MPS = ΔS / ΔYd
 
Average propensity to save= APS = 1 – APC or S / Yd
 
Real exchange rate= C = RER = PF x NER
                                                    PD
MULTIPLIER=k=1/(1-MPC)

Views: 203

Replies to This Discussion

thanks for sharing :D..

RSS

© 2021   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service