Graphically prove that, at the equilibrium point- demand = supply explain.
Market equilibrium: Market is an arrangement
through which buyers and sellers contact each other to do transaction Consumers
bring demand to the market for buying goods to satisfy their goods to the
market to sell them and earn profits.
How the market demand and supply determine prices and
quantities exchange are illustrated in table-1 and which has also been
graphically show in fig-1
Table-1:
Price (tk)
|
Qd
|
Qs
|
Surplus(+)
Supplied(-)
|
10
|
200
|
400
|
+200
|
9
|
300
|
300
|
Market clears
|
8
|
400
|
200
|
-200
|
Explanation: From the table-1 and fig-1 we see that at
price 9 tk quantity demand equals quantity supplied. Thus at price 9 tk the
forces of demand and balanced. Price of tk 9 at which quantity demand equals
quantity supplied is called the equilibrium price and quantity of this good
equals to 300, at this equilibrium price is called the equilibrium quantity
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