Find the consumer surplus and producer surplus.
Demand $p = 600 - 0.0002 x$
Supply $p = 450 + 0.0001 x$
A)Consumer surplus: $25,000,150 Producer surplus: $12,500,400
B)Consumer surplus: $25,000,200 Producer surplus: $12,500,300
C)Consumer surplus: $25,000,100 Producer surplus: $12,500,100
D)Consumer surplus: $25,000,050 Producer surplus: $12,500,200
E)Consumer surplus: $25,000,000 Producer surplus: $12,500,000

Question

Find the consumer surplus and producer surplus. ​
Demand $p = 600 - 0.0002 x$ ​
Supply $p = 450 + 0.0001 x$ ​
A)Consumer surplus: $25,000,150 Producer surplus: $12,500,400
B)Consumer surplus: $25,000,200 Producer surplus: $12,500,300
C)Consumer surplus: $25,000,100 Producer surplus: $12,500,100
D)Consumer surplus: $25,000,050 Producer surplus: $12,500,200
E)Consumer surplus: $25,000,000 Producer surplus: $12,500,000

Quizplus · Accepted Answer

The intersection of the demand and supply curves indicates a market equilibrium price of $50. The area below the demand curve and above the equilibrium price represents consumer surplus, which is a triangle with a base of 100 (from a quantity of 0 to 100) and a height of 500 (from a price of 0 to 50). Thus, consumer surplus is (1/2) x 100 x 500 = $25,000. The area below the equilibrium price and above the supply curve represents producer surplus, which is also a triangle with a base of 100 and a height of 250 (from a price of 50 to 100). Thus, producer surplus is (1/2) x 100 x 250 = $12,500. Therefore, the correct choice is E.

Find the Consumer Surplus and Producer Surplus p=600−0.0002xp = 600 - 0.0002 xp=600−0.0002x

Find the Consumer Surplus and Producer Surplus $p = 600 - 0.0002 x$