Download Article
Download Article
In economics, supply and demand tells us how much people will buy and at what price. But what about when you want to find the exact point when supply equals demand? The equilibrium quantity tells us where that exact point is. In this article, we’ll walk you through the simple linear equations you need to know in order to find equilibrium price and quantity in just a few minutes.
Things You Should Know
- Plug your numbers into the supply and demand equations:
- Qs = x + yP
- Qd = x - yP
- Use Qd = Qs to find the equilibrium price.
- Plug the price, or P, into either the supply equation or the demand equation to solve for equilibrium quantity.
Steps
Expert Q&A
Ask a Question
200 characters left
Include your email address to get a message when this question is answered.
Submit
Advertisement
Tips
Submit a Tip
All tip submissions are carefully reviewed before being published
Name
Please provide your name and last initial
Thanks for submitting a tip for review!
References
- ↑ https://open.lib.umn.edu/principleseconomics/chapter/3-3-demand-supply-and-equilibrium/
- ↑ https://uh.edu/~ghong/fina3334/sol_02.PDF
- ↑ https://www.chem.fsu.edu/chemlab/chm1046course/equilibrium.html
- ↑ https://christou.chem.ufl.edu/wp-content/uploads/sites/62/2017/01/Chapter-17-Chemical-Equilibrium.pdf
About This Article
Thanks to all authors for creating a page that has been read 97,985 times.
Advertisement