
Economics Economics Forum  Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance 
 LinkBack  Thread Tools  Display Modes 
December 6th, 2016, 07:43 PM  #1 
Newbie Joined: Nov 2016 From: Montréal Posts: 9 Thanks: 0  Consumers' and producers' surplus Consumers' and producers' surplus The quantity x demanded per week, in units of a hundred, of a certain product is related to the unit price p (in dollars) by the relation p= −0.01x^2−0.4x+249 The quantity x, in units of a hundred, that the supplier is willing to make available in the market per week is related to the unit price p by the relation p= 0.02x^2+0.1x+17 If the market price is set at the equilibrium price, find the consumer's surplus and the producers' surplus. 
December 6th, 2016, 08:42 PM  #2 
Senior Member Joined: May 2016 From: USA Posts: 520 Thanks: 230 
We tend not to give answers but rather help for what are obviously homework problems. In this case, your problem is a bit unclear, probably because you paraphrased it. I am not sure what setting equilibrium price equal to market price is supposed to mean because in a functional, competitive market, the equilibrium price will be the market price. But ignoring that, your first task is to find that equilibrium price. How do you do that? What numeric result do you get for equilibrium price? What numeric result do you get for equilibrium quantity exchanged? This is basic supply and demand analysis. Graphically, consumers' surplus is the area bounded by the y axis, the line parallel to the x axis with a y value equal to the equilibrium price, and the demand function. Producers' surplus is the area with what bounds? These are definitional issues. The mathematical technique to find areas is what? Do you need help with setting up that technique? 
December 7th, 2016, 02:59 AM  #3 
Global Moderator Joined: Dec 2006 Posts: 16,592 Thanks: 1199  These equations give the same value of p for a particular positive value of x (which happens to be an integer). The equilibrium price mentioned in the question is probably intended to be that value of p. I've moved this thread to the economics forum. 

Tags 
consumers, producers, surplus 
Thread Tools  
Display Modes  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
Consumers' Surplus  Simongekyo  Economics  1  December 6th, 2016 08:49 PM 
consumer surplus  peter20  Economics  0  October 19th, 2015 09:11 AM 
Consumer's surplus  helloprajna  Economics  0  January 16th, 2014 10:49 PM 
Producer/Consumer Surplus  Lucida  Calculus  2  May 30th, 2013 09:10 PM 
Consumer and Producer Surplus  BrianMX34  Calculus  2  December 11th, 2012 05:34 PM 