Answered: Find the consumer surplus, producer…

Find the consumer surplus, producer surplus and total surplus, given the following: Demand: ? = −?^2 − 8? + 70 Supply: ? = ?^2 − 2? + 14

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section5.A: Appendix: Price Elasticity And Tax Incidence

Problem 1AQ

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Concept explainers

Total Surplus and Deadweight Loss

Economists generally define efficiency as when it is impossible to improve the situation of one party without imposing a cost on another. Conversely, if a situation gets inefficient, a party will benefit more than the other without imposing costs on others.

Question

Find the consumer surplus, producer surplus and total surplus, given the following:

Demand: ? = −?^2 − 8? + 70
Supply: ? = ?^2 − 2? + 14

Definition Definition Producer’s gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price and up to the equilibrium quantity.

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