1. The demand function for a certain brand of CD is given by p = -0.01x2 -0.2x + 10 where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. The supply function is given by p = 0.01x² + 0.2x +4 where p is the unit price in dollars and x stands for the quantity that will be made available in the market by the supplier, measured in units of a thousand. Determine the producers' surplus if the market price is set at the equilibrium price. (Round your answer to the nearest dollar.)
1. The demand function for a certain brand of CD is given by p = -0.01x2 -0.2x + 10 where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. The supply function is given by p = 0.01x² + 0.2x +4 where p is the unit price in dollars and x stands for the quantity that will be made available in the market by the supplier, measured in units of a thousand. Determine the producers' surplus if the market price is set at the equilibrium price. (Round your answer to the nearest dollar.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1. The demand function for a certain brand of CD is given by p = -0.01x² - 0.2x + 10 where p is the unit price
in dollars and x is the quantity demanded each week, measured in units of a thousand. The supply function
is given by p = 0.01x² + 0.2x + 4 where p is the unit price in dollars and x stands for the quantity that will
be made available in the market by the supplier, measured in units of a thousand. Determine the producers'
surplus if the market price is set at the equilibrium price. (Round your answer to the nearest dollar.)
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