The Demand Function for a Certain Product Is and the Supply

question 100

Multiple Choice

The demand function for a certain 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 equilibrium point (x, p) and the consumer's surplus there. Round your answer to the nearest million dollars, where applicable. ​

• A) Equilibrium point: (4, 64); Consumer's surplus: 43 million dollars
• B) Equilibrium point: (10, 64); Consumer's surplus: 123 million dollars
• C) Equilibrium point: (8, 64); Consumer's surplus: 203 million dollars
• D) Equilibrium point: (4, 8); Consumer's surplus: 187 million dollars
• E) Equilibrium point: (10, 8); Consumer's surplus: 107 million dollars

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Definitions:

Utility Function

A mathematical representation in economics that assigns a value to each possible choice or bundle of goods to reflect the satisfaction or happiness a consumer derives from it.

Consumption

The application of goods and services by domestic units.

Interest Rate

The percentage of a sum of money charged for its use, determining the cost of borrowing or the return on investment.

Income

Earnings received by an individual or entity, typically through wages, investments, or business activities, over a certain period.