1. The document presents a mathematical model relating supply (Qs) and demand (Qd) as functions of price (P). It shows that where supply and demand are equal (Qd = Qs), the equilibrium price (P*) and quantity (Q*) can be determined.
2. The model is then extended to multiple markets (i=1, 2...) with supply and demand functions in each depending on price and other variables. Equilibrium prices and quantities are calculated where supply equals demand in each market.
3. Further extensions are discussed, including using simultaneous equations to model interconnected markets and adding other variables like time. Examples are given of applying the equilibrium concepts.
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