provides Econ equations (first year students), Study notes of Economics

Download provides Econ equations (first year students) and more Study notes Economics in PDF only on Docsity! ECON (MICRO) EQAUTIONS  Price Elasticity of Demand = % change in quantity demanded/ % change in price  Price Elasticity of Supply = % in quantity supplied/ % change in price.  Point Elasticity = (change in Q /change in P) x (P/Q) = 1/slope x (P/Q)  Total economic surplus = consumer surplus + producer surplus  Market Equilibrium: supply = demand  Profit maximisation: MR = MC  Shut down point for firms: MC =AVC  MRS^1,2 = MU^1/ MU^2 o MRS^2,1 = MU^2/ MU^1 = 1/ MRS^1,2  Profit (Pi) = TR – TC  AC = TC/ q  TC = AC x q  MC = dTC/dq or change in TC/ change in q  AVC = VC/ q  TC = fixed cost + variable cost  Average fixed cost = fixed cost/ q  ATC = TC/ q  MR = ATC  TR = Q x P  Marginal Product of Labour (MPL) = dq/ dL  TR = AR x q  MR = dTR/ dq  MVPL = MPL x P  Gini Index Coefficient = A/ (A+B)