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Consumer & Producer Surplus · Question 69 of 70

Question 69

HardOriginal question

The demand function is p=30−x2p = 30 - x^{2} and the supply function is p=2x2+3p = 2 x^{2} + 3. What is the producer surplus at equilibrium?

Options for question 69

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. The market clears at x0=3x_0 = 3, p0=21p_0 = 21.

  2. PS=21×3−∫03(2x2+3) dx=63−27=36PS = 21 \times 3 - \int_0^{3} (2 x^{2} + 3)\,dx = 63 - 27 = 36.

Worth noting

₹27 is the area under the supply curve up to 3 units, what producers would accept at the least.

Concept
Producer surplus for a curved supply
Typical time
120 s
Your time
—
The rule this testsProducer surplus
Practise this chapter →

Ten questions from Consumer & Producer Surplus, at your own pace.

Practise this chapter →

Ten questions from Consumer & Producer Surplus, at your own pace.