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Equilibrium price formula​

User Kamarey
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1 Answer

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Answer:
SQ=DQ, Quantity Supplied = Quantity Demanded

Step-by-step explanation:

Equilibrium price refers to the price in the market at which the demand for a particular product is equal to the supply of that particular product. This price is a stable quantity and does not change until and unless there is a change in demand or the supply of products.
The sole purpose of determining the equilibrium price is to find a price at which buying and selling of the product can be agreed upon.

Quantity Supplied is equal to Quantity of product * price per unit
SQ = Q + yP

Quantity demand is equal to Quantity of product * price per unit
DQ = Q + yP

So, SQ = DQ

User Shahid Karimi
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