IGCSE Economics Formulas

1. Unit Cost= Total Cost

Output

2. Price Elasticity of Demand= % ^ QD

%^P

% ^QD= Change in QD * 100

Original Quantity
%^ P = Change in Price *100
Original price

3. Price Elasticity of Supply = %^ QS

%^ P
%^QS = Change in QS *100
Original quantity
 %^P = Change in P *100
Original price

4. Social costs = Private Costs + External Costs

5. Social Benefits = Private benefits + External benefits

6. Average propensity to consume (APC) = Consumption

Disposable Income

7. Average propensity to save (APS) = Savings

Disposable Income

8. Income = Consumption + Saving

9. APC + APS = 1

10. Marginal propensity to consume =

Change Consumption
Change in Income
11. Marginal propensity to save = Change in Savings
Change in Income

12. Total Cost (TC)= Fixed Cost (FC) + Variable Cost (VC)

13. Average total cost = Total cost

Output

14. Average Variable Cost = Variable cost

Output
15. Average Fixed cost = Fixed cost
Output
16. Total revenue = price * quantity sold

17. Average revenue = Revenue

Output
18. Profit = Total revenue – Total cost

19. Aggregate demand = C+G+I+(X-M)

20. Real GDP= Nominal GDP * Price Index of Base year
Price Index of current year
21. Unemployment rate= Unemployment *100
Labour force
22. Labour Force=no. of employed+ no. of unemployed
23. Real GDP per capita = Real GDP
Total population
24. Dependency ratio = No. of dependents *100
Labour force

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