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Calculate the producers' surplus for the supply equation at the indicated unit price p. HINT [See...

Calculate the producers' surplus for the supply equation at the indicated unit price

p.

HINT [See Example 2.] (Round your answer to the nearest cent.)

p = 7 + 2q1/3;  p = 10

Solutions

Expert Solution

For the indicated price p, the corresponding value of sales x is to be found out using the demand equation. Then, by Applying the definition of the Producers surplus, we will get the answer as explained in the solution provided below.  

calculate the producere' surplus for the supply equation at the indicated puice po P= + + 293 P=10. a corresponding to the price pelo solution: finct, find the value of a corresponding to by putting p= 10 = 7+298 2913 = 10-7= 3. 27 CCPS) q- (23) = By defination of producand surplus, the producers' surplus at P= lo and q= 27 is given by :- PS= 27/8 (10) (2+) - 1 p da q=0 1+1 278 278 - ] (4 +245) dq = patho - [+1 +23] 12 2-[-() +2 [9]] - 25- ( 756 +243 32 2432 - 27- 999 - 1080- 999 (dollars) Thus, the producers' surplus at the indicated price polo is $3] ( Round to Nearest cents)

milcah answered 2 years ago
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