This website provides detailed guides to solve common economic problems. The areas of economics covered on this webpage mostly relate to first-year undergraduate microeconomics and macroeconomics. Often all it takes to understand a problem is to see a worked example first. The aim of this website is to be that worked example.

**Microeconomics**

- Burden of taxation in supply and demand Model
- Calculate the equilibrium price and quantity from math equations
- Comparative advantage, Absolute advantage and gains from trade
- Consumer surplus, producer surplus and Dead weight loss with inelastic supply curve
- Cross price elasticity of demand
- Deadweight loss monopoly
- Deadweight loss monopsony
- Define elasticity | inelastic demand | elastic demand |Unit elasticity | short run v long run elasticty | Mid-point formula
- Difference between economic and accounting profit
- Economic expansion path
- Equilibrium price and quantity after tax
- Expenditure Minimization problem and Expenditure function
- Find dead weight loss and quantity produced from tax revenue
- How to calculate expenditure elasticity
- Positive and Normative Economics
- Price floor and tax on cheese market
- Show in a supply and demand diagram how minimum wage can increase unemployment
- Supply schedule
- Suppose the government imposes a $2 tax on this market [example]
- Suppose the government imposes a tariff on all imports
- Types of price elasticity of demand
- Utility maximization with perfect complements
- When demand increases what happens to supply
- Why does revenue decrease with elastic demand when price increases
- Why does the demand curve slope downwards
- Why price floors reduce social surplus

**Macroeconomics**

- Balance of trade formula
- Balanced growth path with AK model
- Calculating GDP growth
- Consumer Price Index (CPI) and inflation rate formula
- Factor shares and Cobb-Douglas Factor shares
- holding national savings constant, an increase in Net foreign investment (NFI) does what to the accumulation of capital
- How to calculate National Savings, Public savings and Private Savings
- Natural rate of unemployment
- Net foreign investment formula
- Potential GDP formula and output gap
- Prove if an allocation is pareto optimal it is also efficient
- Suppose the government borrows $20 billion more next year than this year [market for loanable funds]
- Terms of trade
- The market for loanable funds
- The natural level of output
- Three different ways to calculate GDP
- Why does aggregate supply slope upwards?
- Why does the demand curve slope downwards