a.
The graph of supply and demand.
a.
Explanation of Solution
Given:
Equation of demand and supply is given as;
To find the equilibrium point equating both demand and supply.
Now adding
Now putting the value of x in equation 1.
Therefore equilibrium point will be
Now the graph of the supply and demand is shown in below figure.
b.
The consumer surplus and producer surplus.
b.
Answer to Problem 84RE
The consumer surplus is $4000000 and producer surplus is $6000000.
Explanation of Solution
Given:
Equation of demand and supply is given as;
Consumer surplus will be equal to area of below region in the graph.
Therefore consumer surplus is ,
Producer surplus is equal to area of the bellow region.
Therefore producer surplus is ,
So, the consumer surplus is $4000000 and producer surplus is $6000000.
Chapter 7 Solutions
EBK PRECALCULUS W/LIMITS
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