how do I get the equilibrium price and quantity

Question

price per Frisbee      quantity demanded             quantity supplied

 

11                              1 million frisbees                  15 m frisbee

10                              2                                           12

9                               4                                              9

8                               6                                              6

7                               8                                              3

6                               10                                            1

Answer 1

Plot the supply and demand curves on the same graph.

You will find that the supply and demand curves cross at one point.

This is the equilibrium point - where the price on the supply curve is the same as the price on the demand curve and denotes the price at which supply anb demand for a particular product will stabilise.

If the price is too high, then customers will buy less, and there will be a surplus of stock, so suppliers will reduce their price in order to sell their surplus.

If the price is too low, then people will buy loys of the cheap goods and the suppliers will increasee their prices in order to make more moey.