1Calculate Opportunity Cost from PPF
difference in y coordinates/difference in x coordinates
2Calculate Price Elasticity of Demand
% change in Qd/% change in P
ans > 1 (elastic)
ans < 1 (inelastic)
ans = 1 (unit elastic)
ans = 0 (perfectly inelastic)
3Calculate Price Elasticity of Supply
% change in Qs/% change in P
ans = 1 (unit elastic)
ans > 1 (elastic)
ans < 1 (inelastic)
and = 0 (perfectly inelastic)
4Calculate Price Income Elasticity of Demand
% change in Qd/% change in Y
ans > 0 (normal)
ans < 0 (inferior)
5Calculate Price Cross-Price Elasticity of Demand
% change in Qd of first good/% change in P of second good
ans > 0 (substitutes)
ans < 0 (complements)
6Tax Incidence for Buyers/Sellers
7What Shifts Supply Curve/Demand Curve + How it Affects Price and Quantity
8Determinants of Elasticity of Demand and Price Elasticity of Supply
9Tip
elasticities are changing along supply/demand curve
10How a Demand Curve being Elastic/Inelastic Affects Total Revenue
11Binding vs Non-Binding Price Floor/Price Ceiling
12Impact of Binding Price Ceiling/Price Floor on Market
14How Elasticity of Demand/Supply Curve Determines Who Bears More of Tax Incidence