Question

Consider the market defined by the following demand (Pd) and supply (Ps) functions:

Pd=100−3Q and Ps=17+1,5Q,

where P and Q are the price and quantity respectively. What are the producer and consumer surplus of the product respectively? (Round off your final answer to the nearest integer.)

Answer 1

$P_d=P_s,$

$100-3Q=17+1.5Q,$

$83=4.5Q,$

$Q=18.4,$

$P_d=P_s=44.7.$