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…

## 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…

## Isoquant and isocost line

The isocost and isoquant line are used to determine the cost minimising level of output produced by a competitive firm.…