EBK PRECALCULUS W/LIMITS
3rd Edition
ISBN: 9781285607160
Author: Larson
Publisher: CENGAGE CO
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Question
Chapter 7, Problem 79RE
a.
To determine
To find Consumer Surplus and Producer Surplus.
a.
Expert Solution
Answer to Problem 79RE
The equilibrium point is x,p=(00000,130)
Explanation of Solution
Given information:
Graph the systems representing the consumer surplus and producer surplus for the supply and demand equations
DemandP=160−0.0001x SupplyP=70+0.0002x
Calculation:
Consider the given demand and supply equations,
DemandP=160−0.0001x
SupplyP=70+0.0002x
Now plot the graph of demand and supply.
The equilibrium point is x,p=(00000,130)
Hence, the graph is as show.
b.
To determine
To find Consumer Surplus and Producer Surplus.
b.
Expert Solution
Answer to Problem 79RE
Consumer and producer surplus is $4,500,000 , $9,000,000
Explanation of Solution
Given information:
Find the consumer surplus and producer surplus.
DemandP=160−0.0001x SupplyP=70−0.0002x
Calculation:
Consider the graph of part (a) , consumer surplus is considered as area occupied by consumer surplus region.
Area of the triangle, =12bh
Consumer surplus,
=12(300000)(160−130)=150000×30=$4,500,000
Producer surplus is considered as area occupied by producer surplus region.
Area of the triangle, =12bh
Producer surplus,
=12(300000)(130−70)=150000×60=$9,000,000
Hence, consumer and producer surplus is $4,500,000 , $9,000,000
Chapter 7 Solutions
EBK PRECALCULUS W/LIMITS
Ch. 7.1 - Prob. 1ECh. 7.1 - Prob. 2ECh. 7.1 - Prob. 3ECh. 7.1 - Prob. 4ECh. 7.1 - Prob. 5ECh. 7.1 - Prob. 6ECh. 7.1 - Prob. 7ECh. 7.1 - Prob. 8ECh. 7.1 - Prob. 9ECh. 7.1 - Prob. 10E
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