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Consumer & Producer Surplus · Question 59 of 70

Question 59

MediumOriginal question

The demand function is p=60−3xp = 60 - 3 x and the supply function is p=x+12p = x + 12. What is the producer surplus at equilibrium?

Options for question 59

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. The market clears at x0=12x_0 = 12, p0=24p_0 = 24.

  2. PS=24×12−∫012(x+12) dx=288−216=72PS = 24 \times 12 - \int_0^{12} (x + 12)\,dx = 288 - 216 = 72.

Worth noting

₹216 is the area under the supply line up to 12 units, not the surplus.

Concept
Producer surplus at equilibrium
Typical time
90 s
Your time
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The rule this testsProducer surplus
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