Question
Find the consumers' surplus and producers' surplus for
p = D(x) = 71 - (1/10)x and
p = S(x) = 35 + (1/20)x
p = D(x) = 71 - (1/10)x and
p = S(x) = 35 + (1/20)x
Answers
the equilibrium price is where supply equals demand.
71 - 1/10 x = 35 + 1/20 x
x = 240
Pmax (the y-intercept of D) is 710
Consumer surplus is thus
∫[240,710] D(x) dx
and just take it from there. Similarly for producer surplus.
71 - 1/10 x = 35 + 1/20 x
x = 240
Pmax (the y-intercept of D) is 710
Consumer surplus is thus
∫[240,710] D(x) dx
and just take it from there. Similarly for producer surplus.
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