Surpluses at the equilibrium position, Econometrics

The inverse demand and supply functions for a product are given as:

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 where P  is  price, Q  is  quantity  and  the  subscripts  d  and  show demand and supply, respectively.
 
(a)  Determine the equilibrium price and quantity.

(b)  Using the definite integral, calculate the consumer and producer surpluses at the equilibrium position.

(c)  Give your answers to part (a) and (b) on an appropriate diagram.

 

Posted Date: 3/25/2013 5:25:33 AM | Location : United States







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