Market Equilibrium Lab for a business cycle
Simulate a business cycle live in your browser. This runs the real Market Equilibrium Lab solver — adjust the inputs, watch it respond instantly, and export the result. No install, no account.
Controls
Presets
Where the downward demand curve crosses the upward supply curve, the market clears: that price and quantity are the equilibrium. Shifting either curve moves it. The shaded triangles are consumer and producer surplus — the total gains from trade. A per-unit tax lifts the supply curve, raising price, cutting quantity, and creating deadweight loss.
Data Inspector
Governing equation
Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.
Controls
Presets
Elasticity measures how much quantity demanded responds to price. Where demand is elastic (|E| > 1), a price cut raises total revenue; where it is inelastic, a price cut lowers revenue. On a straight-line demand curve the top half is elastic, the bottom half inelastic, and revenue peaks exactly at the midpoint where elasticity equals one.
Data Inspector
Governing equation
Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.
Controls
Presets
At a 0% tax rate the government collects nothing; at 100% no one bothers to earn taxable income, so it also collects nothing. Somewhere between lies a revenue-maximizing rate — the peak of the Laffer curve. How responsive people are to taxes (the elasticity) sets where that peak falls. It is descriptive, not a policy prescription.
Data Inspector
Governing equation
Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.
About this simulation
The full Market Equilibrium Lab tool models a business cycle with the same numerics engineers and scientists use — running entirely client-side. Change any parameter and the result updates in real time, so you can build intuition, check a design, or teach the concept without spreadsheets or installs.
More you can do with Market Equilibrium Lab
Other ways to simulate a business cycle
Frequently asked questions
- How do I simulate a business cycle?
- Open this page and use the live Market Equilibrium Lab tool below — set your inputs and the simulation runs instantly in your browser using real numerics. No install, no account needed.
- Is it free?
- Yes. The simulation runs free in your browser. A one-time unlock or a Pro plan adds advanced parameters, saved presets, data import, and clean exports.
- Can I use my own numbers?
- Absolutely — every input is adjustable, and with data import you can drive a business cycle from your own measurements.