• Assume that Supply has a quadratic relationship with the price. Find this relationship (the help buttons contain an article to compute trend-lines in Excel): S(p) = Round your answer to 3 decimal places • Assume that the Demand has a quadratic relationship with the price. Find this relationship (the help button links to an article to compute trend-lines in Excel): D(p) Round your answer to 3 decimal places • Use the trendlines to find the price corresponding to the equlibrium price between supply and demand: $ per gallon Round your answer to 2 decimal places

• Assume that Supply has a quadratic relationship with the price. Find this relationship (the help buttons contain an article to compute trend-lines in Excel): S(p) = Round your answer to 3 decimal places • Assume that the Demand has a quadratic relationship with the price. Find this relationship (the help button links to an article to compute trend-lines in Excel): D(p) Round your answer to 3 decimal places • Use the trendlines to find the price corresponding to the equlibrium price between supply and demand: $ per gallon Round your answer to 2 decimal places

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 4QP

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Question

Comsumer Surplus Study
The goal of this assignment is to apply Calculus to analyze consumer and producer surplus. This activity is based off the
economical principles discussed in Section 3.1 of "Principle of Economics" and Section 7 of Chapter 3 in the Business
Calculus book.
The table below shows how supply and demand of gasoliine vary depending on the price:
Price ($/gal)
Demand (million of gal.)
Supply (million of gal.)
797
495
700
550
640
600
620
660
1
1.2
1.4
1.6
1.85
D(p):
2.2
2.4
2.6
2.8
580
498
450
430
420
390
3.1
353
757
Note: there is some randomization in the above data to account for price fluctuations. Make sure to check that you input
the correct data in your device.
Perform the following work
• Assume that Supply has a quadratic relationship with the price. Find this relationship (the help buttons contain an
article to compute trend-lines in Excel):
S(p) =
Round your answer to 3 decimal places
=
680
700
• Assume that the Demand has a quadratic relationship with the price. Find this relationship (the help button links to
an article to compute trend-lines in Excel):
Round your answer to 3 decimal places
720
735
Use the trendlines to find the price corresponding to the equlibrium price between supply and demand:
$ per gallon Round your answer to 2 decimal places

$ per gallon Round your answer to 2 decimal places
From the price above what is the equilibrum quantity between supply and demand:
million of gallons Round your answer to closest whole number
• Under these conditions, what is the consumer surplus?
million of gallons Round your answer to closest whole number
• Under these conditions, what is the producer surplus?
Submit Question
million of gallons Round your answer to closest whole number
• Discuss what is a mathematical model in general, and how mathematical models are used in this activity.
Note: the instructor will manually score this last part of the question.
Question Help: Read 1 Video 1
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