Description
Compare a supplied price-quantity expenditure with a budget-share term.
Economic scalar terms depend on price/cost units, denominators, currency direction and the distinction between supplied scenarios and estimated behavior. A price-based margin differs from a cost-based markup, while a constant-revenue construction does not estimate demand. Local taxes, rebates and effect sums retain their stated accounting assumptions.
Compare a supplied price-quantity expenditure with a budget-share term.
When to use this tool
Use Budget Share Price Quantity Closure Residual when you already have price, quantity, suppliedBudget, suppliedShare and need to compare a supplied price-quantity expenditure with a budget-share term.
How to use the tool and how it works
- Enter price, quantity, suppliedBudget, suppliedShare. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read observedExpenditure, impliedExpenditure, closureResidual. Use the output convention below.
Require price/quantity/budget>=0 and suppliedShare in [0,1]; observed=price*quantity, implied=budget*share, closureResidual=observed-implied.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| price | Price | Required. Finite number; minimum 0. |
| quantity | Quantity | Required. Finite number; minimum 0. |
| suppliedBudget | Supplied Budget | Required. Finite number; minimum 0. |
| suppliedShare | Supplied Share | Required. Finite number; minimum 0; maximum 1. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| observedExpenditure | Observed Expenditure | Required. Finite number. |
| impliedExpenditure | Implied Expenditure | Required. Finite number. |
| closureResidual | Observed price*quantity minus suppliedBudget*suppliedShare; one accounting residual. | Required. Finite number. |
{
"input": {
"price": 3,
"quantity": 10,
"suppliedBudget": 100,
"suppliedShare": 0.25
},
"output": {
"observedExpenditure": 30,
"impliedExpenditure": 25,
"closureResidual": 5
}
}Limitations and assumptions
- The share is supplied and not fitted. A zero residual only checks this scalar identity, not an exhaustive budget, rational preferences or valid observations.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use the complete budget, demand, cost and applicable rule definitions for an economic conclusion. Estimate and validate the actual model when effects or responses are needed; one signed wedge, supplied share or algebraic identity does not establish behavior or policy outcomes.
References
Similar or alternative tools
- Fixed Cost Output Average Cost Term
Calculate a supplied fixed-cost-per-output term.
- Budget Constraint Numeraire Change Price
Express a supplied price relative to a positive numeraire price.