D(x)= -4/15 x + 21 and S(x)= 1/3x + 3. D(x) is price in dollars per unit that consumers are willing to pay for x units of items and S(x) is price in dollars per unit that consumers are willing to accept for x units. FInd a) equilibrium point in ordered pair b) consumer surplus at equilibrium point c) producer surplus at ordered pair
D(x)= -4/15 x + 21 and S(x)= 1/3x + 3.
D(x) is
a) equilibrium point in ordered pair
b)
c)
Producer surplus refer to the difference between the minimum acceptance price of the producer and actually received price for the goods and services.
Consumer surplus refer to the difference between the maximum willing to accept price and actually paid for the goods and services
Equilibrium occurs at the point where the demand and supply equal to each other.
a.
Equilibrium quantity can be calculated as follows.
Equilibrium quantity is 30 units.
Equilibrium price can be calculated by substituting the equilibrium quantity in demand equation.
Equilibrium price is $13.
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