Calculating and illustrating equilibrium using linear equations (HL)
The graph shows that the equilibrium price and quantity are Pe, which is between $6 and $7, and Qe, which is between 10 and 20 units. However, to get more exact values calculations can be used.
This shows how to calculate the equilibrium price and quantity. At the equilibrium Qs = Qd.
This graph now shows that at new higher price P1, there is an excess supply of Q1 to Q2