Answered: Use the following definite integrals to…

Use the following definite integrals to solve for the consumer surplus, producer surplus and total surplus, given the following: Demand: P = -Q^2 +47 Supply: P = 6Q +7

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 1P

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Question

Use the following definite integrals to solve for the consumer surplus, producer surplus and total surplus, given
the following:
Demand:
P = -Q^2 +47
Supply:
P = 6Q +7

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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