The demand function of the company that make hard disk is given by P = D(Q) = 78 – 4Q where P is the unit price in ringgit and Q is the quantity demanded in units of a thousand. The supply function for these hard disks is given by P = S(Q) = 13 + Q where P stands for the unit price in ringgit Q stands for the number of hard disk that the supplier will put on the market, in units of a thousand. Determine the consumers' surplus and the producers' surplus if the market price of a hard disk is set at the equilibrium price.

The demand function of the company that make hard disk is given by P = D(Q) = 78 – 4Q where P is the unit price in ringgit and Q is the quantity demanded in units of a thousand. The supply function for these hard disks is given by P = S(Q) = 13 + Q where P stands for the unit price in ringgit Q stands for the number of hard disk that the supplier will put on the market, in units of a thousand. Determine the consumers' surplus and the producers' surplus if the market price of a hard disk is set at the equilibrium price.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.3P

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