Ch 1 · Theory of Demand and Supply

5 concept points · 4 formulas · 4 exam-critical points.

🧮 Formula sheet

1. Price Elasticity (Ed) = (% Change in Qty Demanded) / (% Change in Price)
2. Income Elasticity = (% Change in Q) / (% Change in Income)
3. Cross Elasticity = (% Change in Qx) / (% Change in Py)
4. Equilibrium: Quantity Demanded = Quantity Supplied