To find the equilibrium price and the equilibrium volume, determine the number of factors. Such as the quantity demanded and the quantity supplied. These market-based mechanisms as time and affect the balance. There are also different market structures: monopoly, oligopoly, and competition. On monopoly and oligopoly markets to calculate the equilibrium price and amount should not. In fact there is no balance and no. The firm-monopolist itself sets the price and the volume of production. In oligopoly a few firms together in a cartel in the same way as monopolists control these factors. But in competition it is "the Invisible hand" (through supply and demand).
The demand is the need of the buyer in any product or service. It is inversely proportional to the price on the chart and therefore the demand curve has a negative slope. In other words, the buyer always wants to buy more volume at lesser price.
The amount of goods and services are ready to supply the market with the sellers – this offer. Unlike demand, it is directly proportional to the price on the chart and has a positive slope. In other words, sellers want to sell more goods at a higher price.
That is the point of intersection of demand and supply on the graph is interpreted as the equilibrium. Demand that the proposal in the problems described by functions that have two variables. One of them is price, the other is the output. For example: P=16+9Q (P – price, Q – volume). To find the equilibrium price, equate the two functions of supply and demand. Finding the equilibrium price, substitute it in any of the formulas and calculate Q, that is the equilibrium volume. This principle also operates in the reverse direction: first, calculate the volume, then price.
Example:you Should determine the equilibrium price and the equilibrium volume, if it is known that the magnitude of the demand and supply are described by the function: 3P=10+2Q and P=8Q-1, respectively.
1) 10+2Q=8Q-1
2) 2Q-8Q=-1-10
3) -6Q=-9
4) Q=1.5 (this is the equilibrium volume)
5) 3P=10+2*1.5
6) 3P=13
7) P=4.333