10. CONSUMERS' AND PRODUCERS' SURPLUS The management of the Titan Tire Company has determined that the quantity demanded x of their Super Titan tires per week is related to the unit price p by the relation p = 144 - - x? where p is measured in dollars and x is measured in units of a thousand. Titan will make x units of the tires avail- able in the market if the unit price is 1 p = 48 + 2 dollars, Determine the consumers' surplus and the pro- ducers' surplus when the market unit price is set at the equilibrium price.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
The demand equation is given as:
The supply equation is:
At equilibrium, demand = supply:
Equilibrium point will be (8,80)
Consumer Surplus will be:
It will be given as:
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