Supply and Demand Retake
I only need the answers. I don’t need the work done. I must get both answers co
ect.
1.
Assume that the demand curve D(p) given below is the market demand for apples:
Q=D(p)=320−12pQ=D(p)=320-12p, p > 0
Let the market supply of apples be given by:
Q=S(p)=60+15pQ=S(p)=60+15p, p > 0
where p is the price (in dollars) and Q is the quantity. The functions D(p) and S(p) give the number of bushels demanded and supplied.
What is the consumer surplus at the equili
ium price and quantity?
Round the equili
ium price to the nearest cent, use that rounded price to compute the equili
ium quantity, and round the equili
ium quantity DOWN to its integer part.
Maintain full precision for the vertical intercept by ca
ying the full fraction into your consumer surplus calculation.
Please round your consumer surplus answer to the nearest integer.
2.
The demand curve for tickets at an amusement park is:
Q=D(p)=1200−49pQ=D(p)=1200-49p, p > 0
All customers pay the same ticket price. The marginal cost of serving a customer is $18.
Using calculus and formulas (don't just build a table in a spreadsheet as in the Marginal Analysis I lesson) to find a solution, how many tickets will be sold at the profit-maximizing price?
Round the equili
ium quantity DOWN to its integer part and round the equili
ium price to the nearest cent.
Hint: The first derivative of the total revenue function, which is cumulative, is the marginal revenue function, which is incremental. The formula summary explains how to compute the derivative.