The Equilibrium price of OLA Cab's

The Equilibrium price of OLA Cab's

Equilibrium Price: The point at which both the supply and demand curve intersect each other is called Equilibrium Price. It also states that the quantity demanded is equal to quantity supplied at the given equilibrium point.

This can be explained briefly by taking OLA Cabs as an example of showing the relationship between Price, Demand, and Supply with the respective graph.

Price 󠄃	Demand	Supply
100	50	10
200	40	20
300	30	30
400	20	40
500	10	50

The table shows about the Price, Demand, and Supply of OLA Cabs:

1. There is an inverse relationship between the price and demand. when the price is increasing the demand for the cabs decreasing.
2. There is a direct relationship between the price and supply. When the price is increasing the no of are increasing.
3. We can see that the demand and the supply are equal when the price is Rs.300/- which is called the equilibrium price.

Equilibrium Price Graph

The above graph shows about the supply and demand curve, Equilibrium point, surplus and shortage of  demand and supply:

1. At the equilibrium price we can see that the quantity demanded is equqal to quantity supplied at Rs.300/-
2. At Rs.400/- we can see a surplus of supply, where the quantity demanded is 20 but the supply is 40.
3. At Rs.200/- we can see a shortage of shortage of supply, where the quantity demanded is 40 but the supply is 20.  

NOTE: There can be a change in the Equilibrium Price if there a shift in the demand or the supply curve.