Economics methods

• How to calculate GDP with the expenditure approach

  Calculate Gross Domestic Product by summing consumption, investment, government spending, and net exports using the standard expenditure equation.

• How to calculate consumer and producer surplus

  Calculate consumer and producer surplus by finding market equilibrium and computing the areas between the price level and the demand or supply curves.

• How to find market equilibrium from supply and demand equations

  Calculate market equilibrium price and quantity by setting the algebraic supply and demand equations equal to each other.

• How to calculate price elasticity of demand

  Calculate the price elasticity of demand using the midpoint method to determine quantity responsiveness to price changes.