How to determine supply and demand equilibrium equations

Let us suppose we have two simple supply and demand equations

  • Qd = 20 – 2P
  • Qs = -10 + 2P

To find where QS = Qd we put the two equations together

  • 20-2P = -10 + 2P
  • 20+10= 4P
  • 30/4=P
  • P = 7.5

To find Q, we just put this value of P into one of the equations

  • Q = 20 – (2×7.5)
  • Q= 5

equilibrium-s-d-equation

Qd   = 20 – 2P Qs = -10 + 2P
P Qd QS
0 20 -10
1 18 -8
2 16 -6
3 14 -4
4 12 -2
5 10 0
6 8 2
7 6 4
7.5 5 5
8 4 6
9 2 8
10 0 10
11 -2 12
12 -4 14

 

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