Homework Soursea Find the equilibrium price pesupply demand bFind the consu
a) Find the equilibrium price p_e(supply =demand)
b)Find the consumers surplus and the producers at equilibrium.
D(q)=65-q^2; S(q)=1/3q^2+2q+5
b)Find the consumers surplus and the producers at equilibrium.
D(q)=65-q^2; S(q)=1/3q^2+2q+5
Solution
a) 65-q^2 = 1/3q^2+2q+5 4/3q^2+2q-60 = 0 q = 6 units b) consumer surplus - D(6) = 65-36 = 29 producer surplus - S(6) = 12 + 12 + 5 = 29
