University:
Texas A&M University
Course:
ECON 202 | Principles of Economics
Academic year:

2025
Views:

340

Pages:

1
Author:

MojoMaker

The equilibrium price is? $_______ The equilibrium price is the price at which the quantity of a good demanded by consumers equals the quantity supplied by producers. To determine the equilibrium price, you typically follow these steps: 1. Identify the Demand and Supply Functions: Let the demand function be represented as ( Q_d = D(P) ), where ( Q_d ) is the quantity demanded and ( P ) is the price. Let the supply function be represented as ( Q_s = S(P) ), where ( Q_s ) is the quantity supplied. 2. Set Quantity Demanded Equal to Quantity Supplied: This equation is used to find the equilibrium price. 3. Solve for Price: Rearrange the equation to isolate ( P ) to get the equilibrium price. This usually involves algebraic manipulation of the demand and supply equations. The exact equilibrium price will depend on the specific forms of the demand and supply equations used. Useful Sources: Principles of Economics by N. Gregory Mankiw Economics by Paul Samuelson and William Nordhaus Microeconomics by Robert Pindyck and Daniel Rubinfeld