1. Consider a product whose demand function is D(q) = 900 − 20q − q2 (in...

1. Consider a product whose demand function is D(q) = 900 − 20q − q² (in dollars) and whose supply function is S(q) = q² + 10q (in dollars) for producing q items.

(a) Look at the graph of the supply and demand curves (you may do this on a graphing utility, such as a graphing calculator, Desmos.com, Wabbitemu phone app, etc).

(b) Find the equilibrium price and quantity.

(c) Find the consumers’ surplus.

(d) Find the suppliers’ surplus

Expert Solution

milcah answered 2 years ago

Consider a product whose demand function is D(q) = 900 − 20q − q2 (in dollars)...

Consider a product whose demand function is D(q) = 900 − 20q − q2 (in dollars) and whose supply function is S(q) = q2 + 10q (in dollars) for producing q items. (a) Find the consumers’ surplus. (b) Find the suppliers’ surplus.

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