The demand function for a certain brand of DVD is given by
p = −0.01x^2 − 0.2x + 8
where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Determine the consumers’ surplus if the market price is set at $5 per disc.
2 answers
so, what is "consumer's surplus"?
$5 = −0.01x^2 − 0.2x + 8
0 = −0.01x^2 − 0.2x +3
or
0.01x^2 + 0.2x - 3 = 0
x = -30 or +10
so at a price of $5, people will buy 10,000 a week
0 = −0.01x^2 − 0.2x +3
or
0.01x^2 + 0.2x - 3 = 0
x = -30 or +10
so at a price of $5, people will buy 10,000 a week
1 answer