section 6.7 topic: consumers’ and producers’ surplusmayaj/chapter6_sec6p7topic...determine the...
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Section 6.7 topic: Consumers’ and Producers’ Surplus
Consumers’ Surplus: If p = D(x) is the demand equation, p
o
is the equilibrium price of the com-
modity, and x
o
is the equilibrium quantity, then the consumers’ surplus is given by
Zx
o
0
[D(x)� p
o
] dx
Producers’ Surplus: If p = S(x) is the supply equation, p
o
is the equilibrium price of the commodity,
and x
o
is the equilibrium quantity, then the producers’ surplus is given by
Zx
o
0
[p
o
� S(x)] dx
1. Determine the producers’ surplus for the supply function below at the given number of units sold.
(Round answer to two decimal places.)
p = S(x) = 80e
0.06x, x
o
= 30
2. Calculate the consumers’ surplus for the demand equation at the given number of units demanded.
(Round answer to the nearest cent.)
p = D(x) = 272x
1/3, x
o
= 343
3. Determine the consumers’ surplus and the producers’ surplus at the equilibrium price level for
the following demand and supply functions. (Round answers to the nearest cent.)
p = D(x) = 83.1� 1.8x
p = S(x) = 0.3x
2+ 9
2 Fall 2016, Maya Johnson
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4. Calculate the producers’ surplus at the indicated price level for the supply equation below. (Round
answer to the nearest cent.)
p = S(x) = 130 + 0.2x
2, p
o
= 194.80
5. A fast-food outlet finds that the demand equation for its new side dish is given by
p = D(X) =
54
(x+ 1)
2
where p is the price (in cents) per serving and x is the number of servings that can be sold per
hour at this price. At the same time, the franchise is prepared to supply x servings per hour at
a price of p cents based on the supply function given by
p = S(x) = 2x+ 2
Find the equilibrium price, the consumers’ surplus CS and the producers’ surplus PS at this price
level.
3 Fall 2016, Maya Johnson