In economics, the market equilibrium is defined as a state in a market where there is no pressure for change. That is, there is no pressure for price to move up or down. The primary forces behind this are supply and demand. As long as demand is greater than supply (or vice versa) there is pressure on the price to move up (or down). This process continues until the market reaches its equilibrium, i.e. until quantity supplied equals quantity demanded
In this we will look at how to calculate the equilibrium price and quantity mathematically. To do this, we follow a simple 5-step process: (1) calculate supply function, (2) calculate demand function, (3) set quantity supplied equal to quantity demanded and solve for equilibrium price, (4) plug equilibrium price into supply function, and (5) validate result by plugging equilibrium price into demand function.
also the Equilibrium condition is depicted on graph
#FindEquilibriumPriceAndquantityfromagivendemandand supplyfunctionwithGraphicaldepiction
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Негізгі бет equilibrium price and quantity from a given demand and supply function with Graphical depiction
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