The demand function, not the profit function, for the smartphone
N15+ manufactured by a regional Korean brand NesSung is
p = D(x) = 70 - 0.2x where $p_p$ is the unit
price in dollars and $x_x$
is the quantity demanded in thousands of units of N15+.
The supply function, again not the profit function, for these N15+s
is p = S(x) = 13 + 0.0012$x^2$ where $p_p$
is the unit price in dollars and $x_x$ stands for the number of N15+s
that the supplier will put on the market, in units of a thousand.
(i) Determine the equilibrium price $\bar{p}_p$.
(ii) Determine the quantity $\bar{x}_x$ that leads to the equilibrium price.
(iii) Determine the consumers' surplus if the market price of an
N15+ is set at the equilibrium price.
(iv) Determine the producers' surplus if the market price of an
N15+ is set at the equilibrium price.
(v) Write complete sentences to explain the items found.
