How to Find Equilibrium Quantity_Education and Communications_Common Sense of Life

1 Plug your numbers into the supply function.

The supply equation is represents the price of each unit (typically in dollars). Look at your problem and plug in your numbers for the supply equation.
For instance, let’s say that you are calculating the equilibrium quantity of calculators. The price of each calculator, or unit, is $5 (

2 Insert the demand into the demand function.
The demand equation is is still the price of your unit in dollars. Take a look at your problem and plug in the numbers to the demand function.
Continuing our example from above, let’s say that the price of a calculator is $2 ( $.$

3 Set the 2 quantities as equal in price.

Use . Plug your numbers into the equation.
Our new equation would look like this: .

4 Isolate the variable to solve the equation.
Solve the equation to find the equilibrium price. To isolate the variable, add the ) from both sides. For example:

5 Simplify the equation by dividing both sides.

Solve for $</annotation></semantics></math>, divide each side to simplify your equation. <ul> <li></li> <li></li> <li>You now know that the equilibrium price, or the price where , is $2.</li> </ul> </li> </ol> 6 Insert the P value and solve to find the equilibrium quantity. <ol><li> <b>Plug the equilibrium price into the equation and solve.</b> You can choose either the demand equation or the supply equation (since both are equal, they will both give you the same answer). In the example below, we will use the demand equation, which is . Take the price, P, (which we now know is $2), and plug it into the equation. <ul> <li></li> <li></li> <li></li> <li>You now know that the equilibrium quantity is 12, which means that at $2 per calculator, consumers will purchase 12 of them. <ul> <li>To use the supply equation, your answer would be:</li> <li></li> <li></li> <li></li> <li></li> </ul> </li> </ul> </li></ol> <div class=$

How to Find Equilibrium Quantity

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