Theme 2 formulas

Question 1

What is the formula for Price Elasticity of Demand

Answer 1

% Change in quantity demanded /
% change in price

Question 2

What is the formula for Income Elasticity of Demand

Answer 2

% change in demand /
% income change

Question 3

What is the formula for Capacity Utilisation

Answer 3

Actual Output /
Maximum possible output

Question 4

What is the formula for Average Costs

Answer 4

Total Costs /
Total Output

Question 5

What is the formula for Aggregate Demand

Answer 5

C + I + G + (X - M)