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Systems of linear equations

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Demand, supply and equilibrium price

Demand, supply and equilibrium price

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tagsmatematica, classe/prima, topic/sistemi-lineari, moc

20 lug 20261 min read

A classic application of 2×22\times 22×2 systems is modelling the market of a good through its demand and supply curves. By imposing equality between the two you find the equilibrium price: the intersection of two lines in the price-quantity plane. We look at the linear model, a numerical example on the wheat market and the effect of a tax.

  • Demand and supply curves
  • The equilibrium price
  • Example, equilibrium in the wheat market
  • Away from equilibrium
  • Effect of a tax

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