Tuesday, 11 October 2011

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:)

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