Question #335073

The demand for a product, in dollars, is p = 2000-0.2x-0.01x2 find the consumer surplus when the sales level is 250

1
Expert's answer
2022-05-03T16:42:06-0400

Since the number of products sold is x=250,x=250, the coresponding price is


P=20000.2(250)0.01(250)2=1325P=2000-0.2(250)-0.01(250)^2=1325

The consumer surplus is as follows


0250(p(x)P)dx\displaystyle\int_{0}^{250}(p(x)-P)dx

=0250(20000.2x0.01x21325)dx=\displaystyle\int_{0}^{250}(2000-0.2x-0.01x^2-1325)dx

=[675x0.1x20.01x33]2500=[675x-0.1x^2-\dfrac{0.01x^3}{3}]\begin{matrix} 250 \\ 0 \end{matrix}

=675(250)0.1(250)20.01(250)33=675(250)-0.1(250)^2-\dfrac{0.01(250)^3}{3}

=$110416.67=\$110416.67


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