00:03
Okay, in this question, they gave us the demand curve, which is the price equal to 20 minus 0 .05x, where x is the quantity produced and p is the price in dollars.
00:25
Similarly, they also gave the equation for supply, which is nothing but 2 plus 0 .0002 x squared.
00:35
They asked us to find out market equilibrium.
00:45
Also they ask us to find out producer surplus.
00:58
And the next one is consumer surplus.
01:02
They ask us to find this out.
01:03
So let's dive into the first part.
01:05
We know that market equilibrium occurs when price of demand equal to price of supply.
01:12
So which is nothing but 20 minus 0 .05x is equal to 2 .0 .05x is equal to 2 plus 0 .0 .3.
01:19
0 .002 times x square which when okay when we take all the terms at one side we would get plus 0 .05x minus 18 equal to 0 in the sense i can divide the entire equation by 0 .002 then i would get x squared plus 250 x minus 9 ,000.
01:54
90 ,000 equal to 0.
01:57
So basically if i calculate the roots i would get x is nothing but minus 250 or 200.
02:09
Okay, we know that quantity can't be negative.
02:12
The quantities can't be negative.
02:15
So it has to be 200.
02:16
So x is 200 at market equilibrium.
02:23
So we have to find out.
02:27
Price at market equilibrium.
02:28
Price at market equilibrium is nothing but 20 minus 0 .05 times 200.
02:36
Okay.
02:39
So this is around 10.
02:43
So we get a market equilibrium at price is equal to 10 and quantity is equal to 200.
02:48
Now let's dive into the second question...