Equilibrium occurs at the price where quantity demanded equals quantity supplied.
Price of White Sneakers ($) | Quantity Supplied |
---|---|
$100 | 1 |
$150 | 2 |
$200 | 3 |
Price of White Sneakers ($) | Quantity Demanded |
---|---|
$100 | 3 |
$150 | 2 |
$200 | 1 |
Set the demand and supply equations equal to each other!
Scenario: In the market for white sneakers, demand is -50q + 250
and supply is 50q + 50
. Calculate equilibrium quantity and price.
Demand = -50q + 250
Supply = 50q + 50
Solve for q by setting supply equal to demand!
50q + 50 = -50q + 250
50q (+50q) = 250 (-50)
100q = 200
q = 2
Plug q = 2 into either the demand or supply equations (you'll get the same value)!
Demand = -50(2) + 250
Demand = (-100) + 250
Demand = 150
Supply = 50(2) + 50
Supply = (100) + 50
Supply = 150
Answer: In the market for white sneakers, the equilibrium quantity is 2 white sneakers at an equilibrium price of $150.
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Which of the price and quantity combinations in the accompanying graph represents the market equilibrium?
Which of the following events always results in a lower equilibrium quantity in the market for a good?
Based on the table for our iced coffee market, the market equilibrium quantity and price are…
Price | Quantity Demanded | Quantity Supplied |
---|---|---|
$15 | 10 | 60 |
$11 | 20 | 35 |
$9 | 40 | 40 |
$7 | 50 | 20 |
$5 | 60 | 10 |
Using the provided information, what is the price at equilibrium in this market?
Qs = 10 + 10P
Qd = 30 – 10P
Using the provided information, what is the quantity at equilibrium in this market?
Qs = 10 + 10P
Qd = 30 – 10P
Given the below shift in supply from S1 to S2, find the new equilibrium price & quantity.
Given the below shift in demand from D1 to D2, find the new equilibrium price & quantity.
Given the below shift in both supply (S1 to S2) & demand (D1 to D2), find the new equilibrium price & quantity.
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