How to Calculate Market Equilibrium | (NO GRAPHING) | Think Econ

[@ThinkEcon]

Don't forget to like the video and subscribe to the channel to see more economics content like this in the future! :)

[@taiwohassan6506]

how can we solve this particular problem in excel

[@ThinkEcon]

@@taiwohassan6506 It depends. Are you trying to graph it in excel or simply solve using algebra in excel?

[@taiwohassan6506]

@@ThinkEcon I am trying to solve it using algebra

[@taiwohassan6506]

@@ThinkEcon and it's important, I do it , I have solved with hand but I need to solve with the equations in excel

[@ThinkEcon]

@@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.

[@killerfrank8974]

Broken down so perfectly that even someone like me who's mathematically illiterate can understand it. Thank you; you've earned a new subscriber!

[@ThinkEcon]

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! :)

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[@killerfrank8974]

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[@ThinkEcon]

@killerfrank8974 I was wondering the same thing 🥲

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I spent two hours trying figure it out just to come here and for you to explain it in two mins. Thank you

[@ThinkEcon]

You're welcome! Glad I could help you out

[@bullshitbilly7738]

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

[@ThinkEcon]

I'm glad I made everything crystal clear for you! I appreciate the feedback :)

[@mikmak3450]

Fr me too ✨🙌🏼

[@xasashee5115]

Have my Mid-term next week, your video helped me to finally understand how to calculate it, Thank you!

[@ThinkEcon]

I am really happy to hear that! These types of comments are so encouraging for us. Good luck on your midterm next week! :)

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[@ThinkEcon]

I'm really glad I was able to help! 🙂

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[@ThinkEcon]

You're very welcome. I'm glad you found this video helpful! :)

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[@ThinkEcon]

I’m glad I could help!

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[@ThinkEcon]

I’m glad I could help! You got this!

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Great video, Easy to follow along and understand

[@ThinkEcon]

Thank you! We appreciate the feedback and are glad you found it helpful! :)

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[@ThinkEcon]

I’m really glad to hear that! You’re very welcome :)

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[@ThinkEcon]

Glad you found the video helpful! :)

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[@ThinkEcon]

I'm glad the video helped! Good luck on your exam :)

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[@ThinkEcon]

I’m really glad you found it helpful :)

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[@ThinkEcon]

Glad to be of service!

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[@ThinkEcon]

Thank you!

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[@ThinkEcon]

It can feel overwhelming at times, no doubt. You’ve got this!

[@kristen3715]

Hey just a friendly tip, it would be more clear to pair red with another color to avoid confusing people with red/green colorblindness. Other than that, love your explanations ❤

[@ThinkEcon]

I appreciate the feedback! In videos after this I made sure to switch up the colours as a colourblind friend of mine had the same constructive critique! Glad you’re enjoying the videos 😊

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[@ThinkEcon]

I’m glad you appreciate it; I’ve always found that to be the best teaching style, both in video and in person!

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[@ThinkEcon]

I’m glad it was helpful! :)

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Have my first exam of the semester today watching this to refresh is great cuz we didn’t go over this in class like at all and yet it’s gonna be on the exam lol 😂

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[@ThinkEcon]

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[@ThinkEcon]

Glad the video helped! :)

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[@ThinkEcon]

I'm glad you found it helpful!

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

I'm glad you enjoyed the video!

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[@ThinkEcon]

You’re welcome!

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[@ThinkEcon]

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[@ThinkEcon]

Indeed it was! Glad I could help you understand!

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

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EXCELLENT EXPLANATION

[@ThinkEcon]

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[@ThinkEcon]

You're very welcome! Glad you enjoyed it :)

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Is it related to A levels course ?

[@ThinkEcon]

These concepts are absolutely taught in A level!

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[@ThinkEcon]

I appreciate the positive feedback!

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[@ThinkEcon]

I'm glad to hear it! You're very welcome!

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[@ThinkEcon]

You're welcome!

[@saimamukadam1507]

Thanks for sharing, this really helped!

[@ThinkEcon]

Glad to hear it!

[@marthaangwin2040]

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.

[@ThinkEcon]

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?

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

I'm glad you found it helpful! :)

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[@ThinkEcon]

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[@ThinkEcon]

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Thank you for your help and advice for equilibrium calculate basedon all these video is the best

[@ThinkEcon]

You're welcome! We are happy that you found the video useful :)

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[@ThinkEcon]

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[@ThinkEcon]

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[@ThinkEcon]

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[@shivangagal]

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)?

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AM NOT GOOD AT MATHS BUT THIS WAS VERY HELPFUL SIR

[@ThinkEcon]

I’m really glad to hear that! :)

[@Transformingmindsmovement99]

Very well articulated

[@ThinkEcon]

Thank you very much

[@mahwishrizvi7073]

Helpful video sir, but I have a question (how to calculate elasticity of demand in this condition )

[@akshaysachu1672]

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[@ThinkEcon]

You're very welcome!

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THANK YOU FOR THIS!

[@ThinkEcon]

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[@ThinkEcon]

No problem! Glad I could help :)

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THANK YOUUUUUUU 🎉

[@ThinkEcon]

You're very welcome!

[@sirjobertsvlog1221]

Where did the values 100 and 3 in Demand function came from?

[@ThinkEcon]

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!

[@PeaceUmeh]

Thanks so much

[@ThinkEcon]

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Thanks 🙏 ❤

[@ThinkEcon]

You're welcome!

[@Anshuismail]

Thanks ❤

[@ThinkEcon]

You're welcome!

[@aunisamenace]

where do you get the beginning equation from? the questions i'm working on have no equations only a data chart :/

[@calmingarts2932]

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.

[@ThinkEcon]

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 :)

[@calmingarts2932]

@@ThinkEcon Thank you very much :)

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[@ThinkEcon]

You're very welcome!

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thank you!

[@ThinkEcon]

You're very welcome!

[@feltonkaonga]

Thank you

[@ThinkEcon]

You’re welcome!

[@mavjudaotamurodova]

thank you very much. But what if it is a two-good economy? Will I have two equilibriums?

[@ThinkEcon]

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 :)

[@mavjudaotamurodova]

@@ThinkEcon Yes, helpful. So grateful for your help))

[@sangaydema3550]

Hello author! From where you get those numbers Qd=100-3p Qs=2p+20 or is it type of question?

[@sangaydema3550]

Can you give me simple formula of equilibrium for grade 9 economics

[@ThinkEcon]

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! :)

[@sangaydema3550]

@@ThinkEcon thank you 🙏

[@ThinkEcon]

You’re welcome ☺️