Question

Asked May 9, 2019

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Find the producers' surplus at a price level of $8 for the price-supply equation

p=S(x)=2+0.3x

where p is the price and x is the demand. Do not include a dollar sign or any commas in your answer.

Step 1

__Given:__

The price level *p = *$8.

The price-supply equation is *p = *S(*x*) = 2 + 0.3*x*.

Step 2

__Calculation:__

Substitute *p = *8 in the price-supply equation to find *x *as follows.

Step 3

Calculate the producer su...

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