1. Find the consumer's surplus for the following supply and demand functions. $P = 100 - 0.01 Q_D^2$ $P = 50 + 2Q_s$ 2. Given the demand equation and supply equation calculate $P = 50 - 2Q_D$ $P = 10 + 2Q_s$ (a) the equilibrium price (where the supply meets the demand, $Q_D = Q_s$). (b) the consumer's surplus at the equilibrium price. (c) the producer's surplus at the equilibrium price.
Added by Marcos M.
Close
Step 1
Demand equation: P=50-2QD Supply equation: P=10+2Qs Setting them equal to each other: 50-2QD = 10+2Qs 40 = 2QD + 2Qs 20 = QD + Qs Show more…
Show all steps
Your feedback will help us improve your experience
Madhur L and 66 other Algebra educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
The demand and supply functions for a product are as follows: Demand: p = -0.2x + 8 Supply: p = 0.1x + 2 where p is the price in dollars and x is the number of units (in millions). Find the consumer's surplus and the producer's surplus at the equilibrium price level for the given supply and demand equations. Interpret what the consumer's surplus and the producer's surplus mean. Include the following in your answer: 1. Show work to find the equilibrium point. 2. Show work to find the Consumer's Surplus. 3. Show work to find the Producer's Surplus. 4. Interpret your results.
Madhur L.
The demand and supply functions for a certain product are given by p = 150 - 0.5q and p = 0.002q + 1.5, where p is in dollars and q is the number of items. (a) Which is the demand function? (b) Find the equilibrium price and quantity. (c) Find the total gains from trade at the equilibrium price.
Adi S.
1) For the supply function s(x) and demand level x, find the producers' surplus. s(x) = 0.03x2, x = 200 $______ 2)For the demand function d(x) and supply function s(x), complete the following. d(x) = 300 - 0.4x, s(x) = 0.2x (a) Find the market demand (the positive value of x at which the demand function intersects the supply function). x= (b) Find the consumers' surplus at the market demand found in part (a) $_______ (c) Find the producers' surplus at the market demand found in part (a) $________
Recommended Textbooks
Elementary and Intermediate Algebra
Algebra and Trigonometry
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD