Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN: 9781133382119
Author: Swokowski
Publisher: Cengage
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
Transcribed Image Text:(4) A camera company estimates that the demand function for its new digital camera is p =
275e-0.159 and the supply function is p = 25e0.219. Here q is measured in thousands.
(a) What are the price and level of sales when the market is in equilibrium? (Recall:
equilibrium occurs when demand and supply are equal.)
(b) Compute the consumer surplus when the market is in equilibrium.
(c) Compute the producer surplus when the market is in equilibrium.
(d) Compute the total surplus when the market is in equilibrium.
(e) Graph the demand and supply curves. (You may use an electronic device for this
if you wish.) Verify that the curves intersect at your answer to (a). Shade regions
of the graph whose areas correspond to the consumer surplus and producer surplus,
respectively.
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