Using appropriate schedules, briefly describe the determination of market equilibrium.

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Price (in Rs.) Demand (in Units) Supply (in Units)
1 16 4
2 14 6
3 12 8
4 10 10
5 8 12
6 6 14

 

Schedule

Explanation:

In the above schedule the market equilibrium is established at price of Rs.4 where the quantity demanded and quantity supplied are equal, with equilibrium quantity of 10 units.

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