How to Calculate Equilibrium Price with Given Information?

In summary, the equilibrium price for the object can be determined by finding the intersection of the supply and demand curves, where the quantity supplied equals the quantity demanded. In this case, the equilibrium price is $15.00, as both the supply and demand are equal at 27. There is no need for calculations, as this is a conceptual question.
  • #1
kaz
1
0
I do not understand how to calculate the equilibrium price of an object. Say i have the following information how would i set up the information to solve for the price?

Price of (Insert the name of your good or service) Quantity Demanded Quantity Supplied (in this order.)

\$7.99, 35, 21
\$15.00, 27, 27
\$34.99, 15, 43

Please help i need to finish a project for school.
 
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  • #2
This is more of a concept question. You don't really need to do any calculations.

The equilibrium price occurs when your supply and demand curve intersect, meaning, when supply=demand.

So your equilibrium price is $15.00, because you have supply=27 and demand=27, so supply=demand.
 

FAQ: How to Calculate Equilibrium Price with Given Information?

How is the equilibrium price calculated?

The equilibrium price is calculated by finding the point at which the quantity demanded equals the quantity supplied in a market. This can be done by setting the demand and supply equations equal to each other and solving for the price.

What factors influence the equilibrium price?

The equilibrium price is influenced by factors such as consumer preferences, production costs, market competition, and government regulations. Changes in any of these factors can cause the equilibrium price to shift.

What is the significance of the equilibrium price?

The equilibrium price is important because it represents the point at which the market is in balance, with no excess supply or demand. This price is also considered to be the most efficient and fair price for both producers and consumers.

How does a shortage or surplus impact the equilibrium price?

A shortage occurs when the quantity demanded exceeds the quantity supplied at the equilibrium price. This can cause the price to increase as consumers compete for limited goods. On the other hand, a surplus occurs when the quantity supplied exceeds the quantity demanded at the equilibrium price, causing the price to decrease as producers try to sell their excess goods.

Can the equilibrium price change over time?

Yes, the equilibrium price can change over time due to shifts in demand or supply. For example, if there is an increase in demand, the equilibrium price will increase as well. Additionally, external factors such as natural disasters or changes in technology can also impact the equilibrium price.

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