How to Calculate Market Equilibrium | (NO GRAPHING) | Think Econ
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- Опубликовано: 26 авг 2024
- In this video we explain how to use the demand and supply equations to solve for the equilibrium price and quantity values (often referred to as P* and Q*) using just algebra! This is something which you will need to know how to do throughout your studies in economics, so it's definitely worth reviewing to ensure you understand it.
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how can we solve this particular problem in excel
@@taiwohassan6506 It depends. Are you trying to graph it in excel or simply solve using algebra in excel?
@@ThinkEcon I am trying to solve it using algebra
@@ThinkEcon and it's important, I do it , I have solved with hand but I need to solve with the equations in excel
@@taiwohassan6506 Depending on the version of excel you have, there is a "solver" tool which allows you to input the two (Demand and Supply) equations and it will solve equilibrium P and Q for you.
Broken down so perfectly that even someone like me who's mathematically illiterate can understand it. Thank you; you've earned a new subscriber!
I appreciate the kind words, and the subscription! It's really encouraging for me to hear that I'm making a positive impact on students learning about economics! :)
😂😂😂
@@prashnashrestha6861 What's so funny? Is everyone supposed to be great at math???????
@killerfrank8974 I was wondering the same thing 🥲
@@killerfrank8974 Yo mama😉
was battling to understand this by myself from my course notes, in a couple minutes you taught it to me perfectly. Thank you so much dear brother
I'm glad I made everything crystal clear for you! I appreciate the feedback :)
Fr me too ✨🙌🏼
Have my Mid-term next week, your video helped me to finally understand how to calculate it, Thank you!
I am really happy to hear that! These types of comments are so encouraging for us. Good luck on your midterm next week! :)
You are really a magician. I have tried studying this concept 2 years and till now i could not get this, but your explanation is next level, I appreciate you. thanks and much love ♥from INDIA 🕉
I'm really glad I was able to help! 🙂
I spent two hours trying figure it out just to come here and for you to explain it in two mins. Thank you
You're welcome! Glad I could help you out
Thank you so much for this ! I’m currently taking Econ and I feel like I’m drowning.
It can feel overwhelming at times, no doubt. You’ve got this!
I was struggling in solving this but fortunately for me your video has helped me to understand it very well, Thank you Soo much
You're very welcome. I'm glad you found this video helpful! :)
Thank you for helping me get ahead of my class :)🤫🤑🤑🤑
It's what we're here for!
Great video, Easy to follow along and understand
Thank you! We appreciate the feedback and are glad you found it helpful! :)
thank you so much man tomorrow is my economics exam.
Easily understood love from Nepal
I'm glad the video helped! Good luck on your exam :)
I owe you one bro you saved my life merry Christmas
Glad you found the video helpful! :)
😂😂 thanks so much this video was very helpful to me, it help me do my assignment with a clear understanding to work out my answer
Love it...
I’m glad it was helpful! :)
thanks you not only teach how to do it but you also taught how it actually works
I find that teaching how it actually works goes a long way when it comes to truly understanding the concept. I’m glad you found it helpful! ☺️
That's amazing I get what i was looking for
Glad I could help!
Keep on the good work, you're amazing ❤❤
I appreciate the kind words! :)
I watched a few videos and was so confused... this one was incredibly easy to follow. Thank You!
I’m really glad to hear that! You’re very welcome :)
Waw
Just waw
Gosh, I've been cracking my brain on this, this just explain everything in minutes
I’m really glad you found it helpful :)
Helpful video sir, but I have a question (how to calculate elasticity of demand in this condition )
Thank you so much, you explain it in a good way 😊
Glad I could help! 😊
👌perfect down to the last evry detail
Thank you it all looked like rocket science but now I fully understand
Glad to hear it!
Thank you very much this video helped a lot❤
I’m really glad to hear that! :)
I got what I needed, thank you so much for your efforts
Glad to be of service!
Thank you from India ❤❤❤❤
You’re welcome!
u made the equation so easy ty ECON
I'm glad you found it helpful!
Good teacher , thnk you
Explained and regathered so clearly. Thank you, and subscribed I have.
Glad to hear it!
I really appreciate your efforts
You’re very welcome ☺️
Sirr thankss you help me a lot when my teacher discuss this i can't understand because of my seatmate is so loud and annoying thanks A lot btw is this subject is economics?
Your seat mate is a negative externality to the class
Thanks
U are a life saver
Glad the video helped! :)
Thanks for your help
You’re welcome!
Thank you Love From Bangladesh 🤗😍
I enjoy your lesson may you assist me with economy lessons
really helpful to my home work 💖
Glad you found it useful! :)
Perfectly explained😊,the information is helpful
I appreciate the positive feedback!
What a good teacher
I appreciate the compliment :)
Thank you for helping me
You're welcome!
Do I keep the negative & positive always on the side it presents itself in the original formula. for example 100-3p = 2p+20. So when we separate the constants and the P's the negative stays with the left and the positive with the right? Hope that makes sense.
When you switch anything to the opposite side of the equals sign, you have to change the sign. So for 100 - 3P, the negative sign is attached to the 3P, and so when you move that to the other side, it becomes + 3P. Which would yield 100 = 2P + 20 + 3P. But you'll want to only have P terms on the right, so you would move that + 20 to the left, where it will become - 20.
So now you have 100 - 20 = 2P + 3P.
Does this help?
Thank you so much you are awesome
I'm glad you found the video helpful!
Thanks so much your video was literally helpful ❤
Glad to hear it! 😊
Good explanation
Thank you!
Thank you very much
You are welcome!
Thanks alot for sharing
You're welcome!
where do you get the beginning equation from? the questions i'm working on have no equations only a data chart :/
EXCELLENT EXPLANATION
Thank you!
You hited the nails on the head 🙌.
Thanks very much
You're very welcome!
Thanks for sharing, this really helped!
Glad to hear it!
So short thanks ☺️
Thank you for the good work
You're very welcome! Glad you enjoyed it :)
Thank you so much
You're very welcome!
Why must the supply and demand balance out in a market equilibrium? What is meant by the equilibrium price? Why do you need to use the equilibrium price to work out the values for both p & q? Thank you.
The intuition is that in equilibrium, supply and demand equal each other and so at the equilibrium price there is no surplus or shortage of quantity in the economy! It's the price that makes the consumer AND producer both happy to engage in market activities.
If the price is higher than equilibrium, the consumer is worse off and will demand less. Therefore there will be a surplus. If the price is lower than the equilibrium price then the producers will be worse off and supply less. In this case there would be a shortage! We call both of these cases "disequilibrium." Hope this helps :)
@@ThinkEcon Thank you very much :)
Thank you well explained
This has really helped me
I’m glad to hear that! :)
that's very helpful thanks, so how can we solve for complementary goods e.g Qd=410-5Ps-2Pj , Qs=-60+3Ps where Ps:price for slacks and Pj:price for jacket
Good morning sir. What is 100 , -3p , 2p, in equation please explain it. Thanks
So as you'll see in the video, the supply and demand curves are actually linear. So the 100 and the -3P are actually the y-intercept and the slope, the same as if it was in y=mx+b form.
Does this help?
Thank you for your help and advice for equilibrium calculate basedon all these video is the best
You're welcome! We are happy that you found the video useful :)
What would be the producer surplus for these functions? Would it be the area of the trapezoid as we would ignore the area below the x-axis (as y-intercept of supply function is -10)?
Thank you super easy to catch up 😉
Find the equilibrium price and quantity for two complementary goods, shirts (S) and jackets (J). Using elimination method.
(i) Qds = 410 - 5PS - 2Pj
qsS = 60 + 3P
Can you please solve this
Thanks sir nice class this
You're very welcome!
Hi. Can you please talk about Taylor Rule.
AM NOT GOOD AT MATHS BUT THIS WAS VERY HELPFUL SIR
I’m really glad to hear that! :)
Thank you 💕
You're welcome!
thank you! this is really helpful
Glad to hear it! :)
Beautiful one there
Qs = -20 + 6P = (?) 😢😢 Please
I think that my answer is going to be 120 after collecting like term thanks for explaining
You're welcome!
Thank you
You're welcome!
Thank you so much, it really helped me.🙏
I’m glad to hear it!
Peace be upon you. I am from Iraq🇮🇶 and a Muslim, and I am sitting and reading from you, Professor. If you are a Muslim, press like
How does being muslim have to do anything about this
😂😂😂😂😂
REALLY 😮
What kind of hashish did u have ya calwi xabib qalbi 😂
Thank you sir, it really helps😁
I'm glad you found it helpful! :)
thank you!
You're very welcome!
Excellent teaching 🙌
Thank you very much :)
You are amazing thank you so much
So educational thank you
I have a query, if the demand function is in fraction what’ll we have to do then?
I mean the equation is like this-
QD= 1/2(5-p)
QS= 2p-3
I’m confused as hell, and great video Btw (subscribed after watching this vid)
We made a video about calculating equilibrium when there's fractions:
ruclips.net/video/cecL5G-BEDQ/видео.html
Also, I appreciate the sub! Economics can be really confusing when you're first learning it, so I'm glad you are finding the videos helpful!
@@ThinkEcon thanks for providing the link 😭 and yeah economics is hard
No problem! And yeah, it’s a tough subject, but very rewarding once you understand. Hopefully you’ll find some of our other videos helpful to get you through!
@Cocoa_miller25 so hard , my brain hurts😢
THANK YOU SO MUCH!
You’re very welcome!
awesome ..this helped me a lot ....
Glad to hear it!
Thanks ❤
You're welcome!
I'm from Nepal.
Thanks 🙏 ❤
You're welcome!
Where did the values 100 and 3 in Demand function came from?
The demand function will normally be given to you in the question. This particular one is just a random demand equation that I’ve made up for the video to illustrate how to calculate equilibrium.
If you put the demean equation into y=mx+b form, then the 100 and 3 would represent the slope and y-intercept of the demand curve.
Hope this helps!
Ok good now i understand
Glad the video helped! :)
Thanks
You're welcome!
Very good class. I subscribed. Please tell me what are the tools you are using here to present this topic. Expecting your reply.
thank you very much. But what if it is a two-good economy? Will I have two equilibriums?
You’re welcome, and great question! So if you were given the supply and demand equations of individual goods, then yes, you’d be able to graph supply and demand equilibrium twice, once for each good. This would give you an equilibrium for each good. However, sometimes you’ll be asked to plot what’s called the market demand and market supply, which is all of the demand curves added up, and all of the supply curves added up for all individuals in an economy! Hope this helps :)
@@ThinkEcon Yes, helpful. So grateful for your help))
Thanks so much dear man
You're very welcome!
Sukriya sir 🙏
Sir I want to learn The chapter Function from 3rd year Economy Book
It was great but short
I tried to keep it straight to the point. No messing around on this video!
Tomorrow will be my midterm exam and i’m still struggling to solve this
Are you still struggling after watching? Maybe I can help in the comments..
Thank you so much 🥺
No problem! Glad I could help :)
THANK YOU FOR THIS!
YOU'RE VERY WELCOME! Glad you found it helpful :)
amazing!
Very well articulated
Thank you very much
THANK YOUUUUUUU 🎉
You're very welcome!
Hello author! From where you get those numbers Qd=100-3p
Qs=2p+20 or is it type of question?
Can you give me simple formula of equilibrium for grade 9 economics
I just made up these particular equations for the example. In an assignment or on a test you would be given your own equations, and the steps to solve would be the same as what I've shown in this video. Hope this helps! :)
@@ThinkEcon thank you 🙏
You’re welcome ☺️
Thank you
Am having an exam in 4 hours time 👍
Good luck on the exam!