Question: Assume that the demand curve D ( p ) given below is the market demand for widgets: Q = D ( p ) = 1

Assume that the demand curve D(p) given below is the market demand for widgets:
Q=D(p)=149214pQ=D(p)=1492-14p, p >0
Let the market supply of widgets be given by:
Q=S(p)=4+8pQ=S(p)=-4+8p, p >0
where p is the price and Q is the quantity. The functions D(p) and S(p) give the number of widgets demanded and supplied at a given price.
What is the producer surplus at equilibrium?
Please round the intercept to the nearest tenth and round your answer to the nearest integer.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!