Chapter 6.7, Problem 3TE

The demand function for a certain brand of travel alarm clocks is given by

p = −0.01x² − 0.3x + 10

where p is the unit price in dollars and x is the quantity demanded each month, measured in units of a thousand. The supply function for this brand of clocks is given by

p = −0.01x² + 0.2x + 4

where p has the same meaning as before and x is the quantity, in thousands, the supplier will make available in the marketplace per month. Determine the consumers’ surplus and the producers’ surplus when the market unit price is set at the equilibrium price.