Try the Free Math Solver or Scroll down to Tutorials!












Please use this form if you would like
to have this math solver on your website,
free of charge.

Equilibrium analysis

Chapter 3 – Equilibrium analysis (algebra review)

What is equilibrium? In a specified model, a lack of tendency to change.

This is static equilibrium – study of statics.

Is equilibrium desirable? Depends.

Partial equilibrium – only part of model considered, ie ceteris paribus.

Solving a linear model


Economics “Right” way

No excess demand or supply implies that , so

This is the intersection of sets and

A non-linear example

The demand function is a quadratic function
Only non-negative P’s and Q’s are considered so the demand curve is a segment of a parabola.


Excess demand = 0, so

The above is a quadratic equation that can be written as

aP2 + bP + c = 0

To solve for P:

The quadratic formula! A good formula to memorize.

Try this one:

Answer: P = 1, Q = 3

Higher degree polynomials

Factoring by trial and error

Find a factor, then use quadratic formula or find another factor: