Description
Find producer's surplus at the market equilibrium point if supply function is
p= 292.5/(x+10)
Explanation & Answer
0.5x2+22x+170 =292.5
X2+44x+340-585=0
x2+44x-245=0
x2+49x-5x-245=0
x(x+49)-5(x+49)=0
(x+49)(x-5) =0
QE =5
PE = 19.5
Producers surplus = pEqE – integral 0.5q+17 between 0 and 5
Consumers surplus =Integral 292.5 /(q+10) between 0 and 5 - pEqE
Producers surplus = 19.5 *5 – (q2/4+17q) between 0 and 5
= 97.5 –(25/4+85)= 97.5 -91.25 = 6.25
Consumers surplus = 292.5 ln(q+10) between 0 and 5 -97.5
=292.5 ln (15/10)-97.5
=118.5985-97.5= 21.0985
Review
Review
24/7 Homework Help
Stuck on a homework question? Our verified tutors can answer all questions, from basic math to advanced rocket science!
Similar Content
Related Tags
Narrative of the Life of Frederick Douglass
by Frederick Douglass
The Picture of Dorian Gray
by Oscar Wilde
Oliver Twist
by Charles Dickens
Dr Jekyll And Mr Hyde
by Robert Louis Stevenson
The Goldfinch
by Donna Tartt
Alice in Wonderland
by Lewis Carroll
Killers of the Flower Moon
by David Grann
The Underground Railroad
by Colson Whitehead
The Nightingale
by Kristin Hannah