D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item, and S(x) is the price, in dollars perunit, that producers are willing to accept for x units. Find (a) the equilibrium point, (b) the consumer surplus at the equilibriumpoint, and (c) the producer surplus at the equilibrium point.X2D(x) = (x – 9)², S(x) =x² + 4x + 37(a) What are the coordinates of the equilibrium point?|(Type an ordered pair.)(b) What is the consumer surplus at the equilibrium point?$4(Round to the nearest cent as needed.)(c) What is the producer surplus at the equilibrium point?$4(Round to the nearest cent as needed.)

In equilibrium, D(x) = S(x) Consumer surplus (CS) = area between demand curve and price Producer…

D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item, and S(x) is the price, in dollars per unit, that producers are willing to accept for x units. Find (a) the equilibrium point, (b) the consumer surplus at the equilibrium point, and (c) the producer surplus at the equilibrium point. D(x) = (x – 9)², S(x) = x²+4 + 4x + 37 (a) What are the coordinates of the equilibrium point? (Type an ordered pair.) (b) What is the consumer surplus at the equilibrium point? (Round to the nearest cent as needed.) (c) What is the producer surplus at the equilibrium point? 2$ (Round to the nearest cent as needed.)

D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item, and S(x) is the price, in dollars per unit, that producers are willing to accept for x units. Find (a) the equilibrium point, (b) the consumer surplus at the equilibrium point, and (c) the producer surplus at the equilibrium point. D(x) = (x – 9)², S(x) = x²+4 + 4x + 37 (a) What are the coordinates of the equilibrium point? (Type an ordered pair.) (b) What is the consumer surplus at the equilibrium point? (Round to the nearest cent as needed.) (c) What is the producer surplus at the equilibrium point? 2$ (Round to the nearest cent as needed.)

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 5MC

See similar textbooks

Similar questions

Imagine the demand function for apples is: QD = 24 - 4PD If the market price for apples is $3, what is the consumer surplus?
The supply curve for product X is given by QXS = -520 + 20PX . How much surplus do producer receive when Qx=400
Suppose market demand and supply are given by Qd=100-2P and Qs=5+3P. If a price floor of $30 is set, what will be the size of the resulting surplus?
The inverse demand function of a group of consumers for a given type of widgets is given by the following expression: π=−10q+2000 $ ( I ) where q is the demand and π is the unit price for this product. A. Determine the maximum consumption of these consumers. B. Determine the price that no consumer is prepared to pay for this product. C. Determine the maximum net consumers’ surplus. Explain why the consumers will not be able to realize this surplus. D. For a price π of 1000 $/unit, calculate the consumption, the consumers’ gross surplus, the revenue collected by the producers, and the consumers’ net surplus. E. If the price π increases by 20% (The new price π=1200), calculate the change in consumption and the change in the revenue collected by the producers. F. What is the price elasticity of demand for this product and this group of consumers when the price π is 1000 $/unit. G. Derive an expression for the gross consumers’ surplus. H. The supply function for the widget…
We have three buyers who value a good at $45. There are three possible sellers A, B, C whose marginal costs of production are $20, $30 and $50.Assuming all benefits (and costs) accrue to the buyers (and sellers) what is total surplus created if the buyers and sellers interact in a market? Do not enter the $sign. Notice that you have enough information to only compute surplus for integer values of the good so I should not have to say–assume integer values for good–you should know it.
A producer is willing to produce 3 units at 3 dollars per unit and another producer is willing to produce 3 units at 6 dollars per unit. If the equilibrium price is 11 dollars, what is the combined producer surplus for the two producers?
The demand and supply functions a firm producing a certain product are given respectively by: and , where p is the price per unit and quantities are in millions per year. How much consumer surplus (CS1) do consumers receive when price is P1 = $60?
Refer to Exhibit 4-3. If P1 is a price ceiling, the maximum (per-unit) amount buyers are willing to pay to purchase Q1 units is Group of answer choices P1. P2. P3. P1 + P2. P3 - P1.
The market for soda beverages demand is QD = 90-20P and supply is QS = 30P-10. Price is measured in dollars per one-gallon bottle and quantity in millions of one-gallon bottles a) Find the equilibrium quantity and price in the market for soda and compute Consumer Surplus and Producer Surplus when the market is in equilibrium. As that problem noted, sweetened beverages contribute to the over consumption of high-fructose corn syrup with negative consequences for public health. Suppose that each extra one-gallon bottle of soda sold in the market imposes a $1 external cost on state and federal governments that see Medicare and Medicaid diabetes-related expenditure increase. b) What is the total external cost that the soda beverages industry imposes on the government? Suppose that a $1 per bottle tax is imposed on sellers of soda beverages. What is the new equilibrium price and equilibrium quantity in the market for soda beverages? c) How much consumer surplus and how much producer surplus…
Consider the inverse demand and supply for dates to be given by P=30-3Qd and P=6+Qs The total surplus in this competitive market is ________ where _______ is due to producers. OPTIONS: (i) $50, 50% (ii) $54, 80% (iii) $18, 75% (iv) $72, 25%
A movie theater has been charging $ 10.00 per person and selling about500 tickets on Saturday and Sunday nights. After surveyingtheir customers, theater owners estimate that for every 50 cents theylower the price, the number of attendees will increase by 50 per night.Find the demand function and calculate the consumption surplus whentickets are sold for $ 8.00.
The Demand function for a product is pd(q) = 80(0:1q + 0:2)2, where q is in millions of tons and pd(q) is in dollars per ton. Market equilibrium occurs at the demand for 18 million tons. Compute consumer's surplus.