Midpoint formula The elasticity can be calculated using the midpoint formula: where is the initial quantity, is the new quantity,…
Cobb-Douglas function
tThe Cobb-Douglas function is used to measure consumers preferences between different bundles of goods or how a firm can combine…
Consumer, producer and total surplus
Producer surplus from supply scheduleCalculate producer surplus from supply curve Consumer and producer are both economic measures of welfare. Consumer…
Terms of trade
The terms of trade (TOT) measures the ratio of export prices to import prices, such that: where is a price…
Consumer Price Index (CPI) and inflation rate formula
Consumer price index formulaCalculate CPI with one goodCalculate CPI with two goodsInflation rate formulaCalculate inflation rate with one goodCalculate inflation…