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The demand function for a certain model of a ten-speed bicycle is given by p= D(z) = -0.001z + 250 where p is the unit price in dollars and z is the quantity demanded in thousands of units. The supply function for these bicycles is given by p= S(z) = 0.0006z + 0.02r + 100 where p represents the unit price in dollars and z represents the number of bicycles that the supplier will put on the market, in units of a thousand. Determine the consumers' surplus and the producers' surplus if the market price of a bicycle is set at the equilibrium price.

The demand function for a certain model of a ten-speed bicycle is given by p= D(z) = -0.001z + 250 where p is the unit price in dollars and z is the quantity demanded in thousands of units. The supply function for these bicycles is given by p= S(z) = 0.0006z + 0.02r + 100 where p represents the unit price in dollars and z represents the number of bicycles that the supplier will put on the market, in units of a thousand. Determine the consumers' surplus and the producers' surplus if the market price of a bicycle is set at the equilibrium price.

Algebra for College Students
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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The demand function for a certain model of a ten-speed bicycle is given by p= D(z) = -0.001z + 250 where p is the unit price in dollars and z is the quantity demanded in thousands of units. The supply function for these bicycles is given by p= S(z) = 0.0006z2 + 0.02r + 100 where p represents the unit price in dollars and z represents the number of bicycles that the supplier will put on the market, in units of a thousand. Determine the consumers' surplus and the producers' surplus if the market price of a bicycle is set at the equilibrium price.
Transcribed Image Text:The demand function for a certain model of a ten-speed bicycle is given by p= D(z) = -0.001z + 250 where p is the unit price in dollars and z is the quantity demanded in thousands of units. The supply function for these bicycles is given by p= S(z) = 0.0006z2 + 0.02r + 100 where p represents the unit price in dollars and z represents the number of bicycles that the supplier will put on the market, in units of a thousand. Determine the consumers' surplus and the producers' surplus if the market price of a bicycle is set at the equilibrium price.
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