HOW TO GRAPH DEMAND CURVE

To graph demand curve, we follow the following steps

1- Draw the two axes. On the x-axis take price and on the y-axis take quantity.

2- From the information you have regarding consumers demand, plot a dot in each case. i.e. if a consumer is willing to buy q1 units of a good at price p1 than plot a dot against it.

3- Now join all the dots you have plotted.

4- You have your demand curve of a consumer:)

HOW TO GRAPH SUPPLY CURVE

To graph supply curve, we follow the following steps

1- Draw the two axes. On the x-axis take price and on the y-axis take quantity.

2- From the information you have regarding producers willingness to supply, plot a dot in each case. i.e. if a producer is willing to supply q1 units of a good at price p1 than plot a dot against it.

3- Now join all the dots you have plotted.

4- You have your supply curve of a producer:)

HOW TO FIND EQUILIBRIUM IN COMPETITIVE MARKET

To find equilibrium in a competitive market , we follow the following steps

1- Draw the two axes. On the x-axis take price and on the y-axis take quantity.

2- Draw the supply and the demand curves.

3- The point where the two curves intersect is the equilibrium.

4- You have your equilibrium price and quantity:)

HOW TO FIND EQUILIBRIUM IN MONOPOLY

To find equilibrium in a monopoly , we follow the following steps

1- Draw the two axes. On the x-axis take price and on the y-axis take quantity.

2- Draw the marginal cost, marginal revenue and the demand curves.

3- The point where the marginal cost curve intersects with the marginal revenue curve is the equilibrium point.

4- To find equilibrium quantity, see the value on x-axis that equilibrium point corresponds to.

5- To find equilibrium price, find the point on demand curve at which equilibrium quantity will be demanded and then correspond that point to y-axis.

6- You have your equilibrium price and quantity

HOW TO FIND DEADWEIGHT LOSS IN MONOPOLY

To find deadweight loss in a monopoly , we follow the following steps

1- Draw the two axes. On the x-axis take price and on the y-axis take quantity.

2- Draw the marginal cost, marginal revenue and the demand curves.

3- Find equilibrium point and also find total welfare i.e. consumer plus producer surplus.

4- Now, on the same figure find total welfare in case if it was not monopoly but competitive market.

5- The difference between the competitive market total welfare and monopoly total welfare is positive and it is deadweight loss.

6- You have your deadweight loss in monopoly:)