Free · printable
CB2 formula sheet
7 formulae from Business Economics, gathered from the explainers that teach them. Print it, or tap any heading to read the page it came from.
S.MONK · CB2 formula sheet · 7 formulae · smonk.in/formula-sheet/cb2
Price elasticity of demand, and what it decides about a price rise
PED = (percentage change in quantity demanded) ÷ (percentage change in price)
PED = (dQ/dP) × (P/Q)
Profit maximisation and the shutdown decision, from one cost table
produce where MC = MR, and for a price taker MR = P
National income and the multiplier: where the rest of the spending comes from
Y = C + I + G + (X − M)
total effect = 1,000 × 1/(1 − c) · multiplier = 1/(1 − c)
multiplier = 1 ÷ (the fraction of extra income that leaks out)
leakage rate = t + (1 − c)(1 − t) + m
multiplier = 1 ÷ leakage rate
multiplier = 1 ÷ leakage rate
Free from S.MONK School of Actuaries · smonk.in · every formula here is explained, with a worked example, on the page it links to.