Answer to Question #319555 in Microeconomics for Ras

Question

What is the consumer surplus and producer surplus for : Qd= 300-3p and Qs= 50+2p

Answer 1

$300-3p = 50+2p$

$250 = 5p$

$P_{e} = 50$

While $Q_{e} = 300- 3(50) = 150$

Intercept for demand curve;

$0 = 300-3P$

$P = 100$

Intercept for supply;

$0 = 50 + 2P$

$P = -25$

The producer surplus is as follows;

$\frac{1}{2}\times (50--25)\times 150 =5625$

The consumer surplus is;

$\frac{1}{2}\times 150\times 50 = 3750$