The demand function for a certain brand of CD is given by  p = -0.01x^2 - 0.2x +10  where p is the unit price in dollars and x stands for the quantity that will be made available in the market by the supplier, measured in units of a thousand. Determiine the producer's surplus if the market price is set at the equilibrium price. (round answer to neareset dollar)  P = 0.01x^2 + 0.4x +2

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
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The demand function for a certain brand of CD is given by 

p = -0.01x^2 - 0.2x +10 

where p is the unit price in dollars and x stands for the quantity that will be made available in the market by the supplier, measured in units of a thousand. Determiine the producer's surplus if the market price is set at the equilibrium price. (round answer to neareset dollar) 

P = 0.01x^2 + 0.4x +2 

Expert Solution
Step 1

Demand function of CD brand:

p= -0.01x2-0.2x+10    .......... (1)

Supply function of the CD brand

p =0.01x2+0.4x+2        .......... (2)

 

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