Similar to the supply function, we can calculate the demand function with the help of a basic linear function QD = mP + b and two ordered pairs of price and quantity. As a matter of … See more

Once we have calculated both the supply and the demand function, we can set quantity supplied (QS) equal to quantity demanded (QD). By definition, the intersectio… See more

Now that we know equilibrium price, we can finally calculate equilibrium quantity. To do this, we simply plug the equilibrium price we just calculated (see section 3) back into the supply f… See more

Last but not least, we can verify our result by plugging the quantity and price we just calculated into the demand function. As mentioned above, the two functions should always retu… See more