Finding Equilibrium Price and Quantity Using Fuzzy Linear Demand and Supply Equations

Abstract

In this research, we explore the supply and demand model and pursue the factors that influence demand and supply. We discuss the shifting of equilibrium points for the changes of supply and demand. Equilibrium is the point where both the consumers’ and producer’s willingness agree. Since there exists so many factors affecting the equilibrium point and the data are imprecise, we are aiming to find the equilibrium interval rather than the crisp point. We conduct our work with the help of interval arithmetic of fuzzy numbers and the classical method of solving the system of fuzzy linear equations.