PADP 6950 Study Guide - Midterm Guide: Net Present Value, Economic Surplus

• School: University of Georgia
• Department: Public Administration and Policy
• Course: PADP 6950
• Professor: Emily Lawler

Document Summary

Formulas: utility > u(x) = functions vary, budget constraint > income (i) = px*(x) + py*(y) Y = mx + b form . Y = (i / py) - (px / py)*x: @ optimal consumption, mrs = - (px / py, midpoint elasticity formula. % q = (q2 - q1) / ((q1 + q2)/2) % p = (p2 p1) / ((p1+p2)/2: consumer surplus > cs = 1/2 (q*)(pmax p*, producer surplus > ps = 1/2 (q*)(p* pmin, price paid when taxed. Pd = ps + t: inter-temporal choice > c1 + (c2 / (1+r)) = m1 + (m2 / (1+r))