Supply and demand are both key concepts to understanding the economy because they reflect the prices and quantities of consumer goods and services. According to market economy theory, the relationship between supply and demand balances out at a point in the future; this point is called the equilibrium price. A consumer surplus occurs when the price that consumers pay for a product or service is less than the price they're willing to pay. A producer surplus is the total amount that a producer benefits from producing and selling a quantity of a good at the market price. Both can be represented by areas between the supply and demand curves as shown in the sample figure. 15 and the supply curve y = 15x Find the consumer surplus and producer surplus for the demand curve y = x2 +1 x2 +1 (a) Sketch the graphs and shade the appropriate regions. Find the equilibrium point, (ro, Po). Consumer Supply surplus curve Point of equilibrium Po Demand Producer surplus curve (b) Find the consumer surplus. Show all work to support your answer. Consumer Surplus = (round to nearest tenth) (c) Find the producer surplus. Show all work to support your answer. Producer Surplus = (round to nearest tenth)

Supply and demand are both key concepts to understanding the economy because they reflect the prices and quantities of consumer goods and services. According to market economy theory, the relationship between supply and demand balances out at a point in the future; this point is called the equilibrium price. A consumer surplus occurs when the price that consumers pay for a product or service is less than the price they're willing to pay. A producer surplus is the total amount that a producer benefits from producing and selling a quantity of a good at the market price. Both can be represented by areas between the supply and demand curves as shown in the sample figure. 15 and the supply curve y = 15x Find the consumer surplus and producer surplus for the demand curve y = x2 +1 x2 +1 (a) Sketch the graphs and shade the appropriate regions. Find the equilibrium point, (ro, Po). Consumer Supply surplus curve Point of equilibrium Po Demand Producer surplus curve (b) Find the consumer surplus. Show all work to support your answer. Consumer Surplus = (round to nearest tenth) (c) Find the producer surplus. Show all work to support your answer. Producer Surplus = (round to nearest tenth)

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter6: Systems Of Equations And Inequalities

Section: Chapter Questions

Problem 21T: A manufacturer produces two models of television stands. The table at the left shows the times (in...

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