Equilibrium is the price at which quantity demanded equals quantity supplied. To find it from a schedule, work down the rows until the two quantity columns match, then quote the price and the quantity.
This is the second skill in supply and equilibrium. It follows from knowing that a price change moves you along a curve.
How do you read the schedule, step by step?
- Label the columns so you know which is demand and which is supply.
- Check each row and compare the two quantities.
- Find the row where they are equal. Write down that price and that quantity.
- Check the rows either side. Below the equilibrium price you should see a shortage, and above it a surplus.
- Write the answer with units, for example “RM4 per bowl and 600 bowls per day”.
The check in step 4 is a quick way to catch a misread row.
Worked example
Bukit Sari is a fictional town with a noodle stall market. The schedule is for bowls per day.
| Price (RM per bowl) | Quantity demanded | Quantity supplied |
|---|---|---|
| 2 | 800 | 300 |
| 3 | 700 | 450 |
| 4 | 600 | 600 |
| 5 | 500 | 750 |
| 6 | 400 | 900 |
Step 1, compare: at RM2, demand 800 is bigger than supply 300. At RM3, 700 against 450. At RM4, 600 against 600. These are equal.
Step 2, answer: equilibrium price is RM4 and equilibrium quantity is 600 bowls per day.
Step 3, check either side:
- At RM3, demand 700 minus supply 450 is a shortage of 250 bowls.
- At RM5, supply 750 minus demand 500 is a surplus of 250 bowls.
Both gaps are the same size here, which fits the pattern of a symmetrical schedule. In many schedules the gaps will differ, and that is fine.
What mistake do students make?
Mistaken answer: “Equilibrium is at RM6, because 900 is the highest quantity.”
The student looked for the biggest number in a column instead of matching the two columns. A large quantity supplied at a high price is a surplus, not equilibrium. At RM6 sellers offer 900 but buyers want only 400, so there are 500 unsold bowls.
The correction is to compare across, never down. Equilibrium is a row where the two columns agree.
Check yourself
1. Find the equilibrium price and quantity.
| Price (RM) | Quantity demanded | Quantity supplied |
|---|---|---|
| 1 | 90 | 10 |
| 2 | 70 | 30 |
| 3 | 50 | 50 |
| 4 | 30 | 70 |
Show answer
Equal quantities at RM3. Equilibrium is RM3 and 50 units. At RM2 there is a shortage of 40 (70 minus 30), and at RM4 a surplus of 40 (70 minus 30).
2. In this schedule, which is bigger at RM12: demand or supply? Is there a shortage or surplus, and how big?
| Price (RM) | Quantity demanded | Quantity supplied |
|---|---|---|
| 10 | 50 | 20 |
| 12 | 44 | 32 |
| 14 | 38 | 44 |
| 16 | 32 | 56 |
Show answer
Demand 44 is bigger than supply 32, so there is a shortage of 12. At RM14 supply is bigger by 6, a surplus. No listed price clears exactly. The equilibrium price lies between RM12 and RM14.
3. Why is a surplus not an equilibrium, even though sellers are happy to offer many units?
Show answer
At a surplus, sellers offer more than buyers want, so some goods stay unsold. That creates pressure on sellers to lower the price. Equilibrium needs the quantities to match, so the price can settle.
Where this leads next
Next, see how a gap on the table becomes a story in explaining a shortage with a price adjustment model. The supply and equilibrium practice set has more schedules to try, and the ratio interpretation tool shows how to be careful when comparing numbers.
If you can read the table but cannot yet write the explanation, online one-to-one Economics tuition can help you build that sentence by sentence.