Question: The supply and demand curves for a given commodity are given by
S(p) = 0.02(1 + p)2 D(p) = 10e-0.02p
where S(p) and D(p) are quantities and the price p is measured in dollars.
1. Use the Malaren's series expansion to estimate the demand curve by a quadratic function.
2. Hence find the equilibrium price and quantity.
3. Find either the consumer's surplus or the producer's surplus.