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evaluating a market's equilibrium

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In economics, there are three common methods for finding the equilibrium point in any given market: mathematically, graphically, and by inspection. With given information, you may not be able to find the equilibrium price and quantity only one way, so you must be familiar with all three methods in order to be equipped with the tools necessary for evaluating a market's equilibrium.

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In order to find the equilibrium point in a market, you must have certain information which will enable you to identify the characteristics of that market. In basic micro and macroeconomics, in order to identify the equilibrium, your instructor will provide you with context clues which you must learn to decipher.

The three methods for finding the equilibrium point are:
1. Mathematically/algebraically;
2. Graphically;
3. By inspection/table of numbers.

Using the market for ice cream as an example, ...

Solution Summary

Methods of Finding Equilibrium in a Market are determined.

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