D(x) is the price, in dollars per unit, that consumers will pay for x units of an item, and S(x) is the price, in dollars per unit, that producers will accept for x units. Find a) the equilibrium point, b) the consumer surplus at the equilibrium point, and c) the producer surplus at the equilibrium point if: D(x)=(x-7)², S(x)=x² + 8x + 5

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
icon
Related questions
Question
D(x) is the price, in dollars per unit, that consumers will pay for
x units of an item, and S(x) is the price, in dollars per unit, that
producers will accept for x units. Find a) the equilibrium point,
b) the consumer surplus at the equilibrium point, and
c) the producer surplus at the equilibrium point if:
D(x)=(x-7)², S(x)=x² + 8x + 5
Transcribed Image Text:D(x) is the price, in dollars per unit, that consumers will pay for x units of an item, and S(x) is the price, in dollars per unit, that producers will accept for x units. Find a) the equilibrium point, b) the consumer surplus at the equilibrium point, and c) the producer surplus at the equilibrium point if: D(x)=(x-7)², S(x)=x² + 8x + 5
Expert Solution
Step 1: Definition

equilibrium point : a point where the graph of producer price and consumer price cut the eachother.

OR

Where consumer price and producer price are equal.

consumer surplus : area between the curve of consumer price and equilibrium point.

producer surplus : area between the curve of equlibrium point and producer price.

steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,