Fisheries Economics

Calculation of equilibrium price for fish and fishery products

Demand dictates that consumption also influences production. Consumers exchange commodities for money by paying a price for them. In a free market, price of a good is fixed by the free inter-play of demand and supply forces.

Price is defined as the point of intersection between demand and supply curves. Price is dynamic and it is always mentioned with reference to a particular place and time.

Market equilibrium price is the price at which the entire supply is sold out. In other words, the market is said to be cleared at that price.

Find out the equilibrium price for the following data and show it in a graph.

PRICE (Rs/kg)	QUANTITY DEMANDED	QUANTITY SUPPLIED (kg)
5 10 15 20 25	25 20 15 10 5	5 12 18 25 35