Price Elasticity of Demand (PED)
PED = (% Δ Quantity Demanded) / (% Δ Price) Usually negative (inverse relationship). |PED| > 1 = elastic; |PED| < 1 = inelastic; |PED| = 1 = unit elastic.
AQA A Level Economics 7136
📊 AQA A Level Economics Formula Sheet 2026
Key formulas, diagram reference, and evaluation frameworks for AQA A Level Economics — microeconomics, macroeconomics, and 25-mark essay technique.
Microeconomics Macroeconomics Diagram Reference 25-Mark Essays
Our formula sheets are free to download — save this one as PDF for offline revision.
Aligned with the latest 2026 syllabus and board specifications. This sheet is prepared to match your exam board’s official specifications for the 2026 exam series.
All the Core AQA A Level Economics Formulas & Frameworks
AQA A Level Economics (7136) tests quantitative skills, diagram analysis, and extended evaluation. This formula sheet gives you every formula you need — from elasticity calculations to multiplier analysis — plus a diagram reference and evaluation frameworks for high-mark essays.
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Microeconomics formulas — elasticities, costs, revenue, profit
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Macroeconomics formulas — AD, multiplier, inflation, unemployment
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Diagram reference — which diagrams appear in which topic
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Evaluation frameworks for 25-mark essays
Microeconomics Formulas
Always state the sign convention for elasticity calculations in your answer.
Price Elasticity of Supply (PES)
PES = (% Δ Quantity Supplied) / (% Δ Price) Always positive. PES > 1 = elastic supply; PES < 1 = inelastic supply.
Income Elasticity of Demand (YED)
YED = (% Δ Quantity Demanded) / (% Δ Income) Positive YED = normal good; Negative YED = inferior good; YED > 1 = luxury good.
Cross Elasticity of Demand (XED)
XED = (% Δ Qty Demanded of Good X) / (% Δ Price of Good Y) Positive XED = substitutes; Negative XED = complements.
Total, Average & Marginal Revenue
Total Revenue (TR)
TR = Price × Quantity Average Revenue (AR)
AR = TR / Quantity = Price Marginal Revenue (MR)
MR = ΔTR / ΔQ Cost Structures
TC
TC = TFC + TVC ATC
ATC = TC / Q AVC
AVC = TVC / Q AFC
AFC = TFC / Q MC
MC = ΔTC / ΔQ Profit
Total Profit
π = TR − TC Normal profit
TR = TC (zero economic profit; AR = ATC) Profit maximisation
MR = MC (assuming MC is rising) Four-Way Concentration Ratio
Concentration Ratio = Combined market share of top N firms (%) Macroeconomics Formulas
Link every formula to its macroeconomic context for full evaluation marks.
Aggregate Demand (AD)
AD = C + I + G + (X − M) C = Consumption, I = Investment, G = Government spending, X = Exports, M = Imports. (X − M) = Net exports = current account balance.
Multiplier
Simple multiplier
k = 1 / (1 − MPC) = 1 / MPS = 1 / MPW Multiplier with withdrawal
k = 1 / (MPS + MRT + MPM) Change in income
ΔY = k × Initial injection MPS = marginal propensity to save, MRT = marginal rate of taxation, MPM = marginal propensity to import.
Inflation
CPI / RPI calculation
Inflation rate (%) = ((Current index − Previous index) / Previous index) × 100 Fisher equation
Nominal interest rate ≈ Real interest rate + Inflation rate GDP Growth
GDP Growth (%) = ((Real GDP this year − Real GDP last year) / Real GDP last year) × 100 Unemployment Rate
Unemployment Rate (%) = (Unemployed / Labour Force) × 100 Current Account Balance
Current Account = Trade in Goods + Trade in Services + Primary Income + Secondary Income Lorenz Curve & Gini Coefficient
Gini coefficient: 0 = perfect equality, 1 = perfect inequality. Read from cumulative income share vs cumulative population share curve.
Diagram Reference Guide
Know which diagram(s) are required for each topic area.
Market Failure Diagrams
Negative externality (production)
S + MSC above PMC; deadweight welfare loss triangle Positive externality (consumption)
MSB above MPB; under-consumption shown Public goods / merit goods
Free rider problem; market provision fails Firm & Market Structure Diagrams
Monopoly
AR (demand) > MR; profit-maximise at MR=MC; supernormal profit shaded Monopolistic competition
Short run: supernormal profit. Long run: normal profit (AR=ATC tangency) Oligopoly / kinked demand
Kinked demand curve with MR discontinuity; sticky prices Macroeconomics Diagrams
AD/AS
Aggregate demand shifting right/left; SRAS and LRAS positions; inflationary and deflationary gaps Phillips curve
Short-run trade-off between inflation and unemployment; long-run vertical curve (NAIRU) Laffer curve
Tax revenue vs tax rate; revenue-maximising rate Evaluation Frameworks for 25-Mark Essays
AQA rewards sustained, two-sided evaluation with a supported conclusion.
Structure for a 25-Mark Essay
Introduction
Define key terms → briefly signpost main lines of argument KAA paragraphs
Knowledge and Analysis: theory → diagram → explain the effect Evaluation paragraphs
Counter-argument or qualification: 'However... / This depends on... / In the short run vs long run...' Conclusion
Weigh up arguments → clear overall judgement → justify with specific conditions Evaluation Trigger Phrases
It depends on... | In the short run... however, in the long run... | This assumes... which may not hold if... | The extent to which... depends on... | An alternative view is... | The significance of this depends on the magnitude of the elasticity... Contestable Points to Use
Time lags in policy effects | Size of multiplier effect | Degree of PED/PES | State of the economic cycle | Government failure risk | Crowding out | Supply-side vs demand-side policy conflict How to Use This Formula Sheet
Boost your Cambridge exam confidence with these proven study strategies from our tutoring experts.
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Draw Diagrams Fluently
For AQA Economics, a well-labelled diagram earns specific marks. Practise drawing key diagrams from memory until they take under 90 seconds.
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State Elasticity Formulas First
In data response questions involving elasticity calculations, write the formula, substitute the values, and state the result with sign convention.
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Evaluate Every Claim
25-mark essays lose marks if evaluation is absent. For every argument, ask: 'Does this always apply? What are the conditions? What is the counterargument?'
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Link Micro to Macro
AQA examiners reward integration. Show how microeconomic decisions (firm behaviour, market failure) feed into macroeconomic outcomes.
Formula Sheet FAQ
Quick answers about this free PDF and how to use it for exam revision and active recall.
Is the AQA A Level Economics Formula Sheet 2026 free to download as a PDF?
Yes. This Tutopiya formula sheet is free to use and you can download it as a PDF from this page for offline revision. There is no payment or account required for the PDF download.
What Economics topics and equations does this formula sheet cover?
This page groups key Economics formulas in one place for revision. Master AQA A Level Economics (7136) with this 2026 formula sheet. Covers microeconomics and macroeconomics formulas, diagram reference guide, and evaluation frameworks for 25-mark essays. Always cross-check with your official syllabus and past papers for your exam session.
Can I use this instead of the official exam formula booklet in the exam?
No. In the exam you must follow only what your exam board allows in the hall—usually the official formula booklet or data sheet where provided. This page is a revision and teaching aid, not a replacement for board-issued materials.
Who is this formula sheet for (Post-Secondary)?
It is written for students preparing for assessments at Post-Secondary in Economics, including classroom revision, homework support, and independent study. Teachers and tutors can also share it as a quick reference.
How should I revise with this formula sheet?
Work through past paper questions, quote the correct formula before substituting values, and check units and notation every time. Pair this sheet with timed practice and mark schemes so you see how examiners expect working to be set out.
Where can I get more help with Economics revision?
Explore Tutopiya’s study tools, past paper finder, and revision checklists linked from our tools hub, or book a trial lesson with a subject specialist for personalised support alongside this formula reference.
Need Help with AQA A Level Economics?
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This formula sheet aligns with AQA A Level Economics (7136) specification content.
Always support evaluation points with specific examples or conditions, and make your overall conclusion explicit and reasoned.