asked 163k views
0 votes
Equilibrium price formula​

asked
User Kamarey
by
8.7k points

1 Answer

1 vote

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

answered
User Shahid Karimi
by
8.9k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.