SOLUTION: Please help me to solve this problem. The demand function for a product is {{{p=50/(q+5)}}}, where p is the price per unit (in dollars) for q units, the supply function is {{{q=q/1
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-> SOLUTION: Please help me to solve this problem. The demand function for a product is {{{p=50/(q+5)}}}, where p is the price per unit (in dollars) for q units, the supply function is {{{q=q/1
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Question 465556: Please help me to solve this problem. The demand function for a product is , where p is the price per unit (in dollars) for q units, the supply function is . Determine consumers surplus and producers surplus under market equilibrium. Answer by robertb(5830) (Show Source):
You can put this solution on YOUR website! To find the value of q in which equilibrium happens, must have
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==>500 = (q+5)(q + 45), after cross-multiplication
==> , after further simplification.
==> (q-5)(q+55) = 0 ==> q = 5. (Eliminate q = -55).
when q = 5, demand and supply are both equal to 5.
==> Consumer's surplus = , to 2 decimal places.
==> Producer's surplus = .
