Question 8 The demand and supply functions of a particular product are given by $D(p) = 33 - 2p$ and $S(p) = 4p - 29.5$ respectively, where $p$ is the price (in R10) and quantity (in 100s). The equilibrium price for this product is R Blank 1 Complete the function below that can be used to calculate the consumer surplus by filling in the missing values/functions (where necessary round integration limits to 3 decimals): $\int_a^b (cp + d) dp = e$ a = Blank 2 b = Blank 3 c = Blank 4 d = Blank 5 e = Blank 6 The consumer surplus is R Blank 7.
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5 33+29.5 = 2p+4p 62.5 = 6p p = 62.5/6 p = 10.4167 Show more…
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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.
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