How to Calculate Equilibrium Output

Equilibrium output is an economics term for finding the output where demand equals supply. Your demand and supply function will look something like demand equals 30-10P and supply equals 3+14P, where "P" is the output level. These numbers represent your demand and supply curves. To find where the equilibrium is, you can either graph the functions and mark where they meet, or you can set the two functions equal to each other.

Determine your supply and demand curve functions. For example, assume your functions are 30-10P and 3+14P.

Set the two functions to equal each other. In the example, 30-10P=3+14P.

 

Solve your new equation. In the example 30-10P=3+14P, "P" equals 1.125.

 

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About the Author

Carter McBride started writing in 2007 with CMBA's IP section. He has written for Bureau of National Affairs, Inc and various websites. He received a CALI Award for The Actual Impact of MasterCard's Initial Public Offering in 2008. McBride is an attorney with a Juris Doctor from Case Western Reserve University and a Master of Science in accounting from the University of Connecticut.