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## Indirect utility function

The indirect utility function describes the maximum amount of utility a consumer can achieve, given a fixed amount of income…

## How to calculate expenditure elasticity

The expenditure elasticity measures the responsiveness of spending on a commodity to a change in price. The expenditure elasticity formula…

## Cross price elasticity of demand

Suppose that the cross elasticity of demand for Good X and Good Y is positive 2. What does this tell…

## Types of price elasticity of demand

The elasticity of demand () measures the responsiveness of demand to a change in price. It is defined as the…

## Net foreign investment formula

Net foreign investment (which is also referred to as net capital outflow) is the total amount of investment overseas done…