Question

The demand function for a product is given by p = −0.05x2− 0.3x + 8 where p is the unit price in dollars and x is the weekly demand for the product each week, measured in thousands of units. Find the consumer’s surplus if the market price for the product is $5.

Answer 1

The answer is 5300 units.

Explanation:

The equation will be exactly lie below if the price is 5$:

`5=-0.05x^2-0.3x + 8\\0=-0.05x^2-0.3x+3`

Roots of the parabol will be:

`x_(1)=-11.3\\x_(2)=5.3`

In fact that there will be no negative production, The consumer surplus will be 5300 units