Given a demand function Dx x 82 and a supply function Sx

Given a demand function D(x) = (x ? 8)^2 and a supply function S(x) = x^2, find a) The equilibrium point b) The consumer surplus at the equilibrium point c) The producer surplus at the equilibrium point

Equilibrium point occurs when demand equals supply Therefore at equilibrium point D(x) = S(x) In other words (x-8)^2 = x^2 x^2-16x+64 = x^2 - 16x = - 64 x = 4 Equilibrium point occurs when x = 4