Equilibrium Price and Quantity Calculator with Steps
This equilibrium price calculator with steps shows how to calculate equilibrium price and quantity (demand and supply) PDF guide style. It also generates an equilibrium price and quantity graph and table, plus a pie graph representation.
Equilibrium Quantity (Q) & Price (P) Table
| Step | Quantity (Q) | Price (P) |
|---|
Terminology Used
Equilibrium quantity: The quantity where demand equals supply.
Equilibrium price: The price at which the market clears.
How to Calculate Equilibrium Price and Quantity
Set P = a - bQ equal to P = c + dQ, solve algebraically:
- a - bQ = c + dQ
- Q = (a - c)/(b + d)
- P = a - bQ (or c + dQ)
Frequently Asked Questions
1. How to find equilibrium price from a table?
Locate the price where quantity demanded equals quantity supplied in the table.
2. Equilibrium price example?
For P=80−10Q and P=15+5Q, equilibrium price is 36.67 and quantity is 4.33.
3. What is equilibrium quantity?
It's the unit level Q at which market supply equals market demand.
4. Why is equilibrium important?
Equilibrium ensures efficient allocation of resources in markets.
5. Can equilibrium be negative?
Negative Q or P indicates model parameters outside realistic range.
6. How to calculate equilibrium price and quantity (demand and supply) PDF?
Use the PDF guide or print this page via the 'Download PDF' button above.
7. Equilibrium price and quantity graph?
Plot the two lines P=a−bQ and P=c+dQ; their intersection is the equilibrium.
8. Equilibrium price calculator with steps?
This tool provides step-by-step calculation including formulas and table.