ELASTICITY OF DEMAND

1. Price Elasticity of Demand (  d )

% in quantity demanded Q2 - Q1 P1
d  or d  ×
% in price Q1 P2 - P1

2. Income Elasticity of Demand ( Y )

%  in quantity demanded Q2 - Q1 Y1
Y  or Y  ×
% in income Q1 Y2 - Y1

3. Cross Elasticity of Demand (  X )

% in quantity demanded of good X Q x2 - Q x1 Py1

X  or Y  ×
% price of good Y Q x1 Py2 - Py1
ELASTICITY OF SUPPLY

Price Elasticity of Supply

% in quantity supplied Q2 - Q1 P1
 SS  or  SS  ×
% in price Q1 P2 - P1

MARKET CONDITIONS

Surplus (or shortage) = Quantity supplied – Quantity demanded

(Surplus for positive answer and shortage for negative answer)

THEORY OF PRODUCTION

1. TP
AP =
VI