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 Economics Economics Forum - Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance

 January 16th, 2014, 09:49 PM #1 Senior Member   Joined: Sep 2012 Posts: 112 Thanks: 0 Consumer's surplus Q. The demand & supply functions respectively are: Find the consumer surplus if the demand and price are determined under perfect competition. I tried to solve this problem as follows:- Under perfect competition, the equilibrium condition is At x=11, price(p)= 25 At x=2, price(p)= 16 At x=11 & p=25, the consumer's surplus turns out negative, while at x=2 & p= 16, the consumer's surplus is positive. So what should I conclude? Should I write the conclusion as follows? Since at x=11 & p=25 the consumer's surplus is negative, (11,25) can't be the equilibrium point. Hence the equilibrium point is (2,16) where the consumer's surplus is 56/3 units. Tags consumer, surplus Thread Tools Show Printable Version Email this Page Display Modes Linear Mode Switch to Hybrid Mode Switch to Threaded Mode Similar Threads Thread Thread Starter Forum Replies Last Post hamburgertime Calculus 0 December 13th, 2013 03:17 PM Lucida Calculus 2 May 30th, 2013 09:10 PM BrianMX34 Calculus 2 December 11th, 2012 04:34 PM edwinh Calculus 6 July 8th, 2012 07:54 PM mujuru Algebra 2 May 12th, 2010 05:01 PM

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