Final answer:
To calculate the consumer surplus in Oklahoma City, find the equilibrium price and quantity and use the area formula. Repeat the same process for Seattle.
Step-by-step explanation:
To determine the consumer surplus in Oklahoma City, we need to find the area under the demand curve and above the price. The demand function for Oklahoma City is Qok = 245 - (1/2)Pok, which can also be written as Pok = 490 - 2Qok. The equilibrium price in Oklahoma City is where quantity demanded equals quantity supplied, so we set Qok equal to Qs and solve for Pok.
To calculate the value of consumer surplus, we need to find the area under the demand curve and above the equilibrium price. The area of a triangle is given by the formula A = 1/2 * base * height. In this case, the base is the quantity difference between the equilibrium quantity and the quantity demanded at price zero, and the height is the difference between the equilibrium price and zero. By substituting the values, we can calculate the consumer surplus in Oklahoma City.
The process to calculate the consumer surplus in Seattle is similar to that in Oklahoma City. We need to find the equilibrium price and quantity by setting Qs equal to Qd, and then find the area under the demand curve and above the equilibrium price. By substituting the values into the formula, we can calculate the consumer surplus in Seattle.