00:01
In this problem, we're asked to find the equilibrium price in the consumer and producer's surplus given the supply and the demand function.
00:11
So first, let's find the equilibrium.
00:15
So that's when the supply and the demand are equal.
00:18
So we want to set these two equations equal to each other.
00:21
So the demand function is 18 minus 0 .025x.
00:26
That is equal to the supply function 4 plus 0 .025x.
00:32
So we want to solve for x here.
00:35
So one way i'm going to do this is just add this 0 .25x to both sides.
00:43
So that cancels out here on the left side.
00:46
Over here on the right side, i now have 0 .05x.
00:52
I'm also going to move the constant 4 to the other side by subtracting.
00:56
So when i subtract 4 here on the left side of my equation is 14.
01:02
So i have 14 equals 0 .05x.
01:06
If i divide 14 by 0 .05, i get 280.
01:12
So 14 divided by 0 .05, i get 280.
01:17
So that means x equals 280...