Question

In: Advanced Math

Producers' Surplus The demand function for a certain brand of CD is given by p =...

Producers' Surplus

The demand function for a certain brand of CD is given by

p = −0.01x² − 0.2x + 11

where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. The supply function is given by

p = 0.01x² + 0.6x + 1

where p is the unit price in dollars and x stands for the quantity that will be made available in the market by the supplier, measured in units of a thousand. Determine the producers' surplus if the market price is set at the equilibrium price. (Round your answer to the nearest dollar.)

Expert Solution

The demand function is

.

The supply function is

.

for market equilibrium take supply = demand

.

taking an only positive value

...................equilibrium quantity

.

...................equilibrium price

.

producers' surplus is given by

Colby Messinger answered 2 years ago

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