14) Let D(x) = (x - 7)² be the price, in dollars per dozen units, that consumers are willing to pay for x dozen units of an item, and let S(x) units, that producers are willing to accept for x dozen units. Assumes7. = x +x + 4 be the price, in dollars per dozen a) Find the equilibrium point. b) Find the consumer surplus at the equilibrium point. c) Find the producer surplus at the equilibrium noint

Calculus: Early Transcendentals
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Author:James Stewart
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Chapter1: Functions And Models
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Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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14) Let D(x) = (x – 7)² be the price, in dollars per dozen units, that consumers are willing to
pay for x dozen units of an item, and let S(x)
units, that producers are willing to accept for x dozen units. Assume <7.
x2 + x + 4 be the price, in dollars per dozen
a) Find the equilibrium point.
b) Find the consumer surplus at the equilibrium point.
c) Find the producer surplus at the equilibrium point.
d) A price floor of $20 is imposed. Find the point at the price floor.
e) Find the new consumer surplus.
f) Find the new producer surplus.
g) Find the deadweight loss.
Transcribed Image Text:14) Let D(x) = (x – 7)² be the price, in dollars per dozen units, that consumers are willing to pay for x dozen units of an item, and let S(x) units, that producers are willing to accept for x dozen units. Assume <7. x2 + x + 4 be the price, in dollars per dozen a) Find the equilibrium point. b) Find the consumer surplus at the equilibrium point. c) Find the producer surplus at the equilibrium point. d) A price floor of $20 is imposed. Find the point at the price floor. e) Find the new consumer surplus. f) Find the new producer surplus. g) Find the deadweight loss.
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