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
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
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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.
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