Question

Given the demand and supply curves

p=50 - 0.0001 q^2

p=10 + 0.00015 q^2

Q# provide the following graphically and numerically. (When you finish, you will have 8 different graphs. )

1) The equilibrium quantity and price
2 )The total revenue if this number of items are sold at this price (rectangle)
3)The maximum revenue that could result from the sale of this number of items (area under demand function)
4)The minimum revenue that could result in the production of this number of items (area under the supply function)
5 ) The consumer surplus at the price of equilibrium (Hint: Use 2 and 3)
6)The producer surplus at the price of equilibrium (Hint: Use 2 and 4)
7) The total surplus at the price or equilibrium (Hint: Use 5 and 6)
8 ) The consumer surplus if the price was now set to $7 above the equilibrium price (Hint: What is the new price? and what is the new quantity?)

Answer 1