The Demand Function for a Certain Product Is and the Supply

question 122

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:

Simple Interest

Interest calculated only on the initial principal of a loan or deposit, without compounding.

Annually

Refers to something that happens once every year.

Simple Interest

Interest figured solely on the initial sum, excluding any compounded amounts.

Maturity Value

The amount that will be received at the end of a fixed-term investment, including the principal and any accumulated interest.