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Consumer & Producer Surplus · Question 37 of 70

What is the producers' surplus at the market's equilibrium?

Question 37

MediumOriginal question

In a weekly vegetable market, the demand for a crate of tomatoes is p=90−3xp = 90 - 3x and the supply is p=10+xp = 10 + x, where xx is the number of crates and pp the price in rupees.

What is the producers' surplus at the market's equilibrium?

Options for question 37

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. PS=30×20−∫020(10+x) dx=600−(200+200)PS = 30 \times 20 - \int_0^{20}(10 + x)\,dx = 600 - (200 + 200).

  2. ₹200, the triangle 12×20×(30−10)\frac{1}{2} \times 20 \times (30 - 10).

Worth noting

₹400 is the area under the supply curve, the least sellers would accept, not their surplus.

Concept
Producers' surplus at equilibrium
Typical time
120 s
Your time
—
The rule this testsMarket equilibrium
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