Find the Consumer Surplus and Producer Surplus $p = 600 - 0.0002 x$

question 77

Multiple Choice

Find the consumer surplus and producer surplus.
Demand $p = 600 - 0.0002 x$
Supply $p = 450 + 0.0001 x$

• A)Consumer surplus: $25,000,150Producer surplus: $12,500,400
• B)Consumer surplus: $25,000,200Producer surplus: $12,500,300
• C)Consumer surplus: $25,000,100Producer surplus: $12,500,100
• D)Consumer surplus: $25,000,050Producer surplus: $12,500,200
• E)Consumer surplus: $25,000,000Producer surplus: $12,500,000

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Definitions:

Market-clearing Price

The price at which the quantity supplied of a product equals the quantity demanded, effectively clearing the market of any surplus or shortage.

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