Question

Find the consumers' surplus and the producers' surplus at the equilibrium price level for the given price-demand and price-supply equations. Include a graph that identifies the consumers' surplus and the producers' surplus. Round all values to the nearest integer. p=D(x) = 70 -0.07%; p = S(x) = 30 e 0.001x What is the consumers' surplus, CS? CS = (Round to the nearest integer as needed. Round all intermediate steps to the nearest integer.) What is the producers' surplus, PS? PS = (Round to the nearest integer as needed. Round all intermediate steps to the nearest integer.) Which one of the following graphs correctly identifies the consumers' surplus and the producers' surplus? OA. B. Oc. Кр 2004 S(x) AP 150- S(x) Q 100- S(x) CS CS CS PS D(x) 10 D(x) D(x) 10- 0 10- 0 0 950 х 700 х 1500

Answer 1

Equilibrium pice level D(x): S(x) 0.001% 70-0007 (2) - Boe' x=375.882 The equilibrium price p = 70 -0.07 (3756882) => 43-688 The Conserter suppleres (cs) at the price-level P = D(x) is defined as $'((x) -p)dx=(70-0.07X-43-666) dx 43.688 cs = 0 ł 1083 => 1082.72 The producer Suphurs (ps) at the price level of P = S(x) is defined as 43.688 Р Ps= 8 (P-5(«)dx=5 (43-688-3049 20.00%)lace = 568.95 Š 569 Graph 6 correctly supresents the Consumer surplus & poducer's surplus CS Scanned with CamScanner