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Consumers' Surplus , Producers' Surplus & Total Surplus from demand & supply Functions #PS
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we are given a demand function and supply function and from that we have to calculate consumer surplus producer surplus and total surplus
the solution is like this:
1) first we know that in equilibrium demand is equal to supply
we will equate demand function and supply function and from there we will get the equilibrium price and equilibrium quantity
3) we multiply price and quantity, which is total expenditure in case of consumer surplus and total revenue in case of producer surplus
to find consumer surplus
we integrate the demand function from 0 to equilibrium quantity and from that we subtract the price X quantity
to find producer surplus,
we multiply price and quantity and from that we subtract The Definite integral from 0 to equilibrium quantity and integrate supply function with respect to Q
to find total surplus
we add the consumer surplus and producer surplus
#NTA #NET #SET #JRF #ECONMICS
the solution is like this:
1) first we know that in equilibrium demand is equal to supply
we will equate demand function and supply function and from there we will get the equilibrium price and equilibrium quantity
3) we multiply price and quantity, which is total expenditure in case of consumer surplus and total revenue in case of producer surplus
to find consumer surplus
we integrate the demand function from 0 to equilibrium quantity and from that we subtract the price X quantity
to find producer surplus,
we multiply price and quantity and from that we subtract The Definite integral from 0 to equilibrium quantity and integrate supply function with respect to Q
to find total surplus
we add the consumer surplus and producer surplus
#NTA #NET #SET #JRF #ECONMICS
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