If the Demand Function for a Product Is and the Supply

question 185

Multiple Choice

If the demand function for a product is and the supply function is where p is in millions of dollars and x is the number of thousands of units. Find the consumer's surplus. Round your answer to the nearest million dollars. ​​

• A)​270 million dollars
• B)​267 million dollars
• C)​257 million dollars
• D)​181 million dollars
• E)​219 million dollars

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Definitions:

Price-Support Program

Government policies designed to maintain the price of a commodity at a certain level through subsidies or purchase of the market surplus.

Price Supports

Government interventions to maintain the market price of a commodity at a certain level to protect producers from market fluctuations.

Price Floor

A government or regulatory-imposed minimum price for a commodity or service, intended to prevent the market price from falling below a certain level.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity, usually intended to protect consumers.