Question

Given a linear demand equation q=-mp+b (m>0), find a formula for the consumer's surplus at a price level of p (with dash above it) per unit. I understand how normally when numbers are involved that you use the p term in the formula to help find the q which then allows you to plug it into an integral with the q being the upper limit. However I am a bit confused how I'm meant to show this without numbers. Would I put something like ∫[0,q] (((q-b)/-m)-(p)) dq? Also, if I was given the p formula already, would I need to find the q one if it still is the consumer's surplus I'm looking for?

Answer 1

not sure, since you don't seem to have a supply curve. The equilibrium price is where the demand = supply, right?