The demand equation for a product is p= (q - 4)²
And the supply equation is p= q² + q + 7
Where p (in thousands of dollars) is the price per 100 units when q hundred units are demanded and supplied. Determine consumer’s surplus and producer’s surplus under market equilibrium.

Question

The demand equation for a product is p= (q - 4)²
And the supply equation is p= q² + q + 7
Where p (in thousands of dollars) is the price per 100 units when q hundred units are demanded and supplied. Determine consumer’s surplus and producer’s surplus under market equilibrium.

gorv · Answer

q^2+q+7=q^2+16-8q
9q=9
q=1
p=9