7. The demand function of a commodity is given by p= 40 -0.1x -0.01x², x20; and the supply function for that same commodity is given by p, = 0.1x+0.01x².x20. a. Find the market equilibrium b. Compute the maximum total surplus for the commodity.

7. The demand function of a commodity is given by p= 40 -0.1x -0.01x², x20; and the supply function for that same commodity is given by p, = 0.1x+0.01x².x20. a. Find the market equilibrium b. Compute the maximum total surplus for the commodity.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 5SQP

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7. The demand function of a commodity is given by p = 40 -0.1x-0.01x²,
x20; and the supply function for that same commodity is given by P, =
0.1x+0.01x².x20.
a. Find the market equilibrium
b. Compute the maximum total surplus for the commodity.

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