For the given supply and demand equations, find the consumer surplus. Round to the nearest dollar. Demand Supply
P = 160 - 0.00006x p = 110 + 0.00003x
A)$9,259,259
B)$10,185,185
C)$11,111,111
D)$13,888,889
E)$4,629,630

Question

Quizplus · Accepted Answer

To find the consumer surplus, first find the equilibrium quantity by setting the demand and supply equations equal: 160 - 0.00006x = 110 + 0.00003x. Solving for x gives the equilibrium quantity. Then, find the equilibrium price by substituting x back into either the demand or supply equation. The consumer surplus is the area of the triangle above the price level and below the demand curve, calculated as (1/2) * (base) * (height), where the base is the equilibrium quantity and the height is the difference between the maximum price consumers are willing to pay (from the demand equation when x=0) and the equilibrium price. Calculating this gives approximately $9,259,259.

For the Given Supply and Demand Equations, Find the Consumer