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The demand function for a product is given by 2 p x x = − − + 0.05 0.3 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?

User Lolero
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Answer: This is the correct and complete question ; The demand function for a product is given by p = -0.05x2 - 0.3x + 0.8, 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 for the consumer surplus is 7033.3million

Step-by-step explanation:

The concept of consumer surplus shows the disparity between the price that consumers are willing to pay for a product in the market and the actual price they do pay on a product. Consumer Surplus is also the difference between the price that a consumer is willing to pay for a commodity and the price that the consumer actually pays. For example, if you would pay 76p for a cup of tea, but can buy it for 50p – your consumer surplus is 26p

Consumer surplus is measured as the area below the downward-sloping demand curve, or the amount a consumer is willing to spend for given quantities of a good, and above the actual market price of the good, depicted with a horizontal line drawn between the y-axis and demand curve.

The attached below shows the detailed calculations with steps.

The demand function for a product is given by 2 p x x = − − + 0.05 0.3 8 where p is-example-1
The demand function for a product is given by 2 p x x = − − + 0.05 0.3 8 where p is-example-2
The demand function for a product is given by 2 p x x = − − + 0.05 0.3 8 where p is-example-3
User Yash Mehrotra
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