MHB How to Calculate Equilibrium Price with Given Information?

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SUMMARY

The equilibrium price of a good is determined at the point where the quantity demanded equals the quantity supplied. In the provided example, the equilibrium price is established at $15.00, where both the quantity demanded and supplied are 27 units. This intersection indicates that at this price, the market is balanced, with no surplus or shortage. Understanding this concept is crucial for analyzing market dynamics in economics.

PREREQUISITES
  • Basic understanding of supply and demand curves
  • Familiarity with market equilibrium concepts
  • Ability to interpret tabular data
  • Knowledge of price elasticity
NEXT STEPS
  • Study how to graph supply and demand curves
  • Learn about shifts in supply and demand
  • Explore the concept of price elasticity of demand
  • Investigate real-world applications of equilibrium pricing in various markets
USEFUL FOR

Students studying economics, market analysts, and anyone interested in understanding pricing strategies and market equilibrium concepts.

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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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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.
 

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