-Example

#6:

Giventhe demand

functioq

p

=

100

"-'*"

and assuming that

at

market equilibrium

po

=48

& xo:91,

find

the

consumers'

zurplus.

.

fq'

Conzumers' Surplus

=

Jo

(100

e-008")dx

-

(48X91)

=

6464

-4368

=

2096

(use

calculator)

-Conzumers

would

gah

$2,096

in

buying

goods

at the

equilibrium

price

instead

ofwhat

theywould

have

been

wiiling to

pay

at

a higher price).

-Example

#7:

Gven the supply functioq

p

:4t{?+

10,

find

the

producers'

zurplus

in

the

above

example.

ail

Producers

Surplus:

(48X91)

-

|

6+,I-f+f0)dx

=

4368 - 3225:1143.

U6

-Producers'

would

gain

$1,143

in

supplying

goods

at the

equilibrium

price

instead

ofthe

lower

price

at which

they

would

have

been

wifling

to

provide

the

goods.