Question: PRODUCERS' SURPLUS The supply function for the CDs of Exercise is given by
p = 0.01x2 + 0.1x + 3
Where p is the unit wholesale price in dollars and x stands for the quantity that will be made available in the market by the supplier, measured in units of a thousand. Determine the producers' surplus if the wholesale market price is set at the equilibrium price.
Exercise: CONSUMERS' SURPLUS The demand function for a certain brand of CD is given by
p = -0.01x2 - 0.2x + 8
Where p is the wholesale unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Determine the consumers' surplus if the wholesale market price is set at $5/disc.