Worked-example setupScope and assumptions
- The Linden baseline functions are supplied fictional teaching models with a $60 equilibrium.
- The $50 and $70 checks hold both relationships fixed and alter only the evaluated price.
- No queue, stockout, inventory rollforward, transaction, profit, cash, or welfare-area evidence is supplied.
- Period
- One representative fictional week
- Units
- USD per qualifying chair and qualifying chairs per week
- Rounding
- Exact whole-dollar prices and whole-chair model quantities
Check the lower price
At $50, buyers would purchase 900 chairs per week and sellers would offer 700.
Excess demand is 900 - 700 = 200 chairs per week. That is a market shortage at
the stated price. It is not the universal scarcity of resources, and it does
not prove that a particular seller stocked out or recorded 200 unfilled orders.
Check the higher price
At $70, buyers would purchase 700 and sellers would offer 900. Excess supply is
900 - 700 = 200 chairs per week. That is a market surplus at the stated price.
The 200-chair unit gap is not $200 of profit, cash surplus, or total welfare
surplus. Nor does it prove that all 200 offered units were produced and remain in
ending inventory.
| Price | Quantity demanded | Quantity supplied | Market classification |
|---|---|---|---|
| $50 | 900 | 700 | 200-chair shortage |
| 60 | 800 | 800 | Equilibrium |
| 70 | 700 | 900 | 200-chair surplus |
Explain adjustment conditionally
In a flexible competitive model, the shortage can create upward price pressure and the surplus downward pressure. Actual markets can adjust through queues, search, inventory, production, quality, terms, rationing, entry, or rules. The calculation identifies the gap under the model; it does not prove the adjustment path, incidence, welfare effect, or preferred intervention.
Verified calculation · economics foundations analysis
The curriculum loader recomputed this example before it entered the site build. Expand any structured input to inspect the stated facts.
- linear markets
- 1 field
Inspect data
{
"linden_price_checks": {
"demand_intercept_quantity": 1400,
"demand_quantity_per_price": 10,
"price_checks": {
"clearing_price": 60,
"high_price": 70,
"low_price": 50
},
"supply_intercept_quantity": 200,
"supply_quantity_per_price": 10
}
}Recomputed result
| Measure | Value |
|---|---|
| clearing price at equilibrium | 1 |
| high price quantity demanded | 700 |
| high price quantity supplied | 900 |
| high price shortage quantity | 0 |
| high price surplus quantity | 200 |
| low price quantity demanded | 900 |
| low price quantity supplied | 700 |
| low price shortage quantity | 200 |
| low price surplus quantity | 0 |