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Find the consumer and producer surpluses by using the demand and supply functions, where p is...

Find the consumer and producer surpluses by using the demand and supply functions, where p is the price (in dollars) and x is the number of units (in millions). Demand Function Supply Function p = 1005 − 25x p = 42x consumer surplus $ producer surplus $

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Expert Solution

we have

At equilibrium point,

put x = 15 in S(x),

At equilibrium (p0, x0) = (630, 15)

the formula for the consumer surplus,

put p0 = 630 and x0 = 15,

and the formula for the producers surplus,

put p0 = 630 and x0 = 15,

milcah answered 2 years ago
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