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.)

Solutions

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 1 year ago

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