Business: Consumer and Producer Surplus. Beth enjoys skydiving and is willing to pay p dollars per jump, where p = D ( x ) = 7.5 x 2 − 60.5 x + 254 . a. Find Beth’s consumer surplus if she makes 2 jumps. b. Suppose the supply function for Aero Skydiving Center is given by p = S ( x ) = 15 x + 95 . Find the producer surplus if the centers sell Beth 2 jumps. c. Find the equilibrium point and the consumer and producer surpluses at this point. Assume that Beth makes no more than 5 jumps. d. Explain what the equilibrium point represents to both Beth and Aero Skydiving Center.
Business: Consumer and Producer Surplus. Beth enjoys skydiving and is willing to pay p dollars per jump, where p = D ( x ) = 7.5 x 2 − 60.5 x + 254 . a. Find Beth’s consumer surplus if she makes 2 jumps. b. Suppose the supply function for Aero Skydiving Center is given by p = S ( x ) = 15 x + 95 . Find the producer surplus if the centers sell Beth 2 jumps. c. Find the equilibrium point and the consumer and producer surpluses at this point. Assume that Beth makes no more than 5 jumps. d. Explain what the equilibrium point represents to both Beth and Aero Skydiving Center.
Business: Consumer and Producer Surplus. Beth enjoys skydiving and is willing to pay p dollars per jump, where
p
=
D
(
x
)
=
7.5
x
2
−
60.5
x
+
254
.
a. Find Beth’s consumer surplus if she makes 2 jumps.
b. Suppose the supply function for Aero Skydiving Center is given by
p
=
S
(
x
)
=
15
x
+
95
. Find the producer surplus if the centers sell Beth 2 jumps.
c. Find the equilibrium point and the consumer and producer surpluses at this point. Assume that Beth makes no more than 5 jumps.
d. Explain what the equilibrium point represents to both Beth and Aero Skydiving Center.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.