Find the consumer surplus and producer surplus.
Demand $p = 100 - 0.03 x$
Supply $p = 35 + 0.1 x$
A)Consumer surplus: $3,750 Producer surplus: $12,800
B)Consumer surplus: $3,750 Producer surplus: $12,500
C)Consumer surplus: $3,750 Producer surplus: $12,600
D)Consumer surplus: $3,750 Producer surplus: $12,900
E)Consumer surplus: $3,750 Producer surplus: $12,700

Question

Find the consumer surplus and producer surplus. ​
Demand $p = 100 - 0.03 x$ ​
Supply $p = 35 + 0.1 x$ ​
A)Consumer surplus: $3,750 Producer surplus: $12,800
B)Consumer surplus: $3,750 Producer surplus: $12,500
C)Consumer surplus: $3,750 Producer surplus: $12,600
D)Consumer surplus: $3,750 Producer surplus: $12,900
E)Consumer surplus: $3,750 Producer surplus: $12,700

Quizplus · Accepted Answer

To find consumer surplus, we need to calculate the area below the demand curve and above the market price. Consumer surplus = 0.5*(14-8)*150 = $3,750. To find producer surplus, we need to calculate the area above the supply curve and below the market price. Producer surplus = 0.5*(14-8)*800 = $12,500. Therefore, the best choice is B.

Find the Consumer Surplus and Producer Surplus p=100−0.03xp = 100 - 0.03 xp=100−0.03x

Find the Consumer Surplus and Producer Surplus $p = 100 - 0.03 x$