econ formula sheet

econ formula sheet - Formula Sheet rise y2 - y1 Y = = . x2...

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Formula Sheet Slope m = y 2 - y 1 x 2 - x 1 = Δ Y Δ X = rise run . Generalized Demand Q = f ( P, { I,p,A,n } ) Q = α 0 + α 1 I + α 2 p + α 3 A + α 4 n - MP Q = D - MP Simple demand D = α 0 + α 1 I + α 2 p + α 3 A + α 4 n What increases D, increases demand P does not affect D, P does not change demand A, n are always positively related to D I of normal good, p of substitute good are positively related to D I of an inferior good, p of complement good are negatively related to D What is positively related to D, their increase, increases Demand Inverse demand : Q = D - MP MP = D - Q P = 1 M D - 1 M Q P = a - m d Q Inverse Demand m d = 1 /M absolute slope of inverse demand, a = m d D What increases D, also increases a , increases demand 1
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Consumer Surplus (CS) CS = 1 2 m d Q 2 when Q is given CS = ( a - P ) 2 2 m d when buyers’ price P is given Generalized Supply Q = f ( P, { T,p,w,t a ,s u ,n } ) Q = β 0 + β 1 T + β 2 p + β 3 w + β 4 t a + β 5 s u + β 6 n + NP Q = S + NP Simple supply S = β 0 + β 1 T + β 2 p + β 3 w + β 4 t a + β 5 s u + β 6 n What increases S, increases supply P does not affect S, P does not change Supply T , s u , and n
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This note was uploaded on 01/18/2011 for the course ECON 11853 taught by Professor Brianallenhunt during the Fall '10 term at Georgia State.

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econ formula sheet - Formula Sheet rise y2 - y1 Y = = . x2...

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