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# Equilibrium Point Calculator + Online Solver With Free Steps

The online **Equilibrium Point Calculator** helps you quickly calculate the equilibrium point of the defined curves.

The **Equilibrium Point Calculator** is a powerful tool for mathematicians and economists to find where the supply and demand curves intersect. The** Equilibrium Point Calculator **can be used to determine the consumer and producer surplus and equilibrium point.

## What Is an Equilibrium Point Calculator?

**The Equilibrium Point Calculator is an online tool that is used to calculate the equilibrium point intersecting the demand and supply curves. **

The calculator requires two inputs, the demand equation, and the supply equation. The calculator then plots and calculates the intersection between the equations. The **equilibrium point** is where the consumers and producers are satisfied with the product’s price.

## How To Use the Equilibrium Point Calculator?

You can use the **Equilibrium Point Calculator **by simply entering your mathematical equations in their respective boxes and clicking the “Submit” button. The results will generate instantly. The step-by-step process of using the **Equilibrium Point Calculator** is given below.

### Step 1

First, you need to input your **supply equation** in the first box.

### Step 2

After adding the first equation, input your **demand equation** into the second box.

### Step 3

After adding both equations, click the **Submit** button. A new window will show the plotted graphs for your equations.

## How Does an Equilibrium Point Calculator Work?

An **Equilibrium Point Calculator** works by calculating the equilibrium point or static point of demand and supply curves defined by the user. The curves are then plotted into a graph. The intersection between these two curves is called an equilibrium point. Economists use this to find information like **consumer surplus** and **producer surplus**.

## What Is Equilibrium?

**Equilibrium** is a condition in which market **supply** and **demand** are balanced, resulting in steady prices. In general, prices fall when there is an **oversupply** of goods or services, resulting in increased demand, while a scarcity or undersupply leads costs to rise, resulting in a lower order.

## Why Is Equilibrium Useful?

**Equilibrium** is useful because it leads to achieving both a balanced and efficient market. If the market is not at equilibrium, several economic pressures are applied to shift the price to a balance.

This occurs when there is either more supply than the market demands or when there is more demand than the market can supply.

A competitive market operating in **equilibrium** is considered efficient. When one group’s condition cannot be improved without inflicting a cost on another, this is called **efficiency** as defined by economists.

## Demand Curve

The **demand curve** depicts the number of units of a service or product purchased at various price points. It represents the quantity-price connection that is calculated using the **demand schedule**. The prices are labeled on the vertical axis, while the quantity supplied is represented on the graph’s vertical axis.

A **demand curve** is usually always downslope, indicating consumers are eager to buy more of an item at reduced costs.

## Supply Curve

The **supply curve** depicts the relationship between the cost of a commodity or service and the amount delivered over time. The price will often display on the left vertical axis, while the quantity supplied will appear on the horizontal axis in a typical diagram.

The **supply curve** is upward sloping. This shows the desire of the producers to sell more and more of their products at a higher price.

## What Is an Equilibrium Point?

The point where the supply curve and demand curve intersect is called the **equilibrium point**. When two lines intersect on a graph, it usually means something.

As both the **demand** and **supply** curves have a price on the vertical axis and quantity on the horizontal axis, it is possible to plot them into a single graph. Demand and supply work together to determine the price and amount of goods bought and sold in a market.

The **equilibrium point** determines the **equilibrium price** of the graph. **The equilibrium price** is the only price where the producers and consumers are satisfied with the cost of the goods.

If the price is below the **equilibrium point**, the demand for goods will exceed the supplied quantity. This will cause a shortage of goods. If the cost exceeds the **equilibrium point**, this would indicate a surplus or excess of goods in the market.

## Solved Examples

Here are some examples of finding the equilibrium point using the **Equilibrium Point Calculator**.

### Example 1

Find the **equilibrium point** of the following curves.

The demand curve equation:

**Qd = 100 – 5P **

The supply curve equation:

**Qs = -125 + 20P**

### Solution

First, we input the demand curve equation into the **Equilibrium Point Calculator**.

**Qd = 100 – 5P **

Then, we input the supply curve equation into the **Equilibrium Point Calculator**.

**Qs = -125 + 20P **

We click the submit button and the intersection point between the two curves is given, along with a graph, as shown in Figure 1 below:

**P = 9 and y = 55**

### Example 2

Consider the following equations:

The demand curve equation:

**Qd = 16 – 2P **

The supply curve equation:

**Qs = 2 + 5P **

Using these curve equations for supply and demand, calculate the **equilibrium point.**

### Solution

In the **Equilibrium Point Calculator,** we first add the demand curve equation:

**Qd = 16 – 2P **

After that, we type in the supply curve equation into our **Equilibrium Point Calculator**:

**Qs = 2 + 5P **

Clicking the submit button will instantaneously give us the **equilibrium point** of the curves and plot the graph, as shown in Figure 2:

**P = 2 and y = 12 **

### Example 3

Find the **equilibrium point** between these curves using the following equations for supply and demand curves.

Equation of demand curve:

\[ Q_{d} = (x – 4)^2 \]

Equation of supply curve:

\[ Q_{s} = x^2 + 8 \]

### Solution

To solve these curve equations, we plug them into the **Equilibrium Point Calculator**. First, we add the demand curve equation:

\[ Q_{d} = (x – 4)^2 \]

Next, we plug in the supply curve equation:

\[ Q_{s} = x^2 + 8 \]

After plugging in both the equations, we click the “Submit” button. Immediately, we are given the equilibrium point of the curves, which is depicted in a graph as shown in Figure 3 below:

**P = 1 and y = 9**

*All images/graphs are created using GeoGebra.*