The management of the Titan Tire Company has determined that the quantity demanded x of their Super Titan tires/week is related to the unit price p by the relationp = 128 − x2where p is measured in dollars and x is measured in units of a thousand. Titan will make x units of the tires available in the market if the unit price isp = 32 + 1/2x2dollars. Determine the consumers' surplus and the producers' surplus when the market unit price is set at the equilibrium price. (Round your answers to the nearest dollar.)

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Asked Dec 12, 2019
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The management of the Titan Tire Company has determined that the quantity demanded x of their Super Titan tires/week is related to the unit price p by the relation

p = 128 − x2

where p is measured in dollars and x is measured in units of a thousand. Titan will make x units of the tires available in the market if the unit price is

p = 32 + 1/2x2

dollars. Determine the consumers' surplus and the producers' surplus when the market unit price is set at the equilibrium price. (Round your answers to the nearest dollar.)

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Step 1

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128 – x +x? = 32 - 128 – 32 =x +x² 3 96 =-x x = 64 x= 8

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Step 2

The equilibrium price is given by,

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p=D(8) =128 - (8) = 64

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Step 3

The consumer’s...

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х JPy - хр- [(128 - - 64x8 - 64 x 8 128х- 3 3D = 341.33

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