Term
How does one Algebraically Calculate Budget Constraints?  

Definition
"Total Income"= ("Price of Good X" * "Amount of Good X Purchased") + ("Price of Good Y" * "Amount of Good Y Purchased")  


Term
How does one obtain the expression for the budget line?  

Definition
"Budget Line"=("Total Income"/"Price of Good Y")("Price of Good X"/"Price of Good Y ")*"Amount of Good X purchased"  


Term
What is the Horizontal Intercept of a Budget Line?  

Definition
"Total Income"/"Price of Good X"  


Term
What is the Vertical Intercept of a Budget Line?  

Definition
"Total Income"/"Price of Good Y"  


Term
What is the slope of a budget line?  

Definition
Price of Good X/Price of Good Y=Price Ratio  


Term
What is the midpoint formula?  

Definition
((Change in Quantity)/((q0+q1)/2))/((Change in Price)/((p0+p1)/2))  


Term
What does midpoint formula do?  

Definition
Takes the average elasticity between any two points along a demand function.  


Term
What does (Ed^m) represent?  

Definition
Elasticity of Demand found through midpoint formula.  


Term
How to solve for equilibrium price?  

Definition
Set quantity demanded equal to quantity supplied and solve for P.  


Term
How to solve for equilibrium quantity?  

Definition
Plug the equilibrium price into the quantity supplied or quantity demanded function and solve.  


Term
What is the algebraic formula for Elasticity?  

Definition
(Slope)*(Price/Quantity Demanded)  


Term

Definition
Ratio of absolute changes of quantity demanded and quantity supplied.  


Term
What is the slope of this demand function? Q=ABP  

Definition


Term
What is another interpretation of how one obtains the expression for the budget line?  

Definition
"Budget Line"=("Vertical Intercept")("Price of Good X"/"Price of Good Y ")*"Amount of Good X purchased"  

