Question: How do you find the equilibrium quantity? Note: There is a rounding error issue with this problem. Please answer the questions, and then after the
How do you find the equilibrium quantity?

Note: There is a rounding error issue with this problem. Please answer the questions, and then after the due date, I will grade it by hand. The demand price for a certain brand of CDs is modeled by the function D(q) = -0.01q2 - 0.3q + 11, where p is the wholesale unit price in dollars and q is the quantity demanded each week, measured in thousands of discs. The supply price for the CDs is given by the function S(q) = 0.01q2 + 0.6q - 2. where price is the wholesale unit price in dollars and q stands for the number of CDs that will be made available in the market by the supplier, measured in thousands. (a) Determine market equilibrium quantity (in thousands of discs) and price (in dollars). (Round your answers to two decimal places.) market equilibrium quantity thousand discs market equilibrium price (b) Determine the consumers' surplus in thousands of dollars. (Round your answer to three decimal places.) $ thousand (c) Interpret the consumers' surplus in the context of this problem. (Round your answer to the nearest dollar.) $ is the total -Select- (d) Determine the producer's surplus in thousands of dollars. (Round your answer to three decimal places.) $ thousand (e) Interpret the producer's surplus in the context of this problem. (Round your answer to the nearest dollar) is the total -Select
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
