The Point of Market Equilibrium In Mathematics

The market is a place where sellers and buyers meet to make buying and selling transactions. Therefore there will be a bargain between the seller and the buyer. Market price or often called a market equilibrium price will occur when the price demanded by consumers in accordance with the price offered by the manufacturer.

Mathematically, market equilibrium occurs when the demand curve and the supply curve intersect at a point called the equilibrium point of the market.

Market Equilibrium Point Graph

Determining the equilibrium point of the market is obtained by solving the linear equation system of two variables x and p.

Example Question of Market Equilibrium Point

Determine the market equilibrium point of the demand function p = -2x + 600 and the supply function p = 3x + 100!

Answer:
Supply price = Demand price
3x + 100 = -2x + 600
3x + 2x + 100 - 100 = -2x + 2x + 600 - 100
5x = 500
5x/5 = 500/5
x = 100

Supply price :
P = 3x + 100
P = 3(100) + 100
P = 300 + 100
P = 400

So the market balance point occurs when the $400 price and the amount of goods demand or supply as many as 100 units.

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