Question #235026

The demand equation for a product is Q=10(100−p)1/2Q=10(100-p)^ 1/2

Calculate the consumers’ surplus under equilibrium which occurs at a market price of K84. 


Expert's answer

dQdp=10(100−p)12=−5(100−p)12=−5(100−84)12=−1.25\frac{dQ}{dp}=10(100-p)^{\frac{1}{2}}\\ =-\frac{5}{\left(100-p\right)^{\frac{1}{2}}}\\ =-\frac{5}{\left(100-84\right)^{\frac{1}{2}}}\\ =-1.25

The negative means it is not a surplus but a deficiency


LATEST TUTORIALS
APPROVED BY CLIENTS