Results 1 to 2 of 2

Thread: Microeconomics, consumer surplus, etc.

  1. #1
    Newbie
    Joined
    Feb 2019
    From
    NY
    Posts
    6

    Microeconomics, consumer surplus, etc.

    Hello. My microecon professor just assigned this homework assignment and I was absent for my last class due to illness. I'm not sure how to go about solving this problem. I understand how to make a general graph and the equilibrium, but not the rest. Any help would be greatly appreciated. Microeconomics, consumer surplus, etc.-bvtfuzr.png
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor

    Joined
    Apr 2005
    Posts
    20,249
    Thanks
    3366

    Re: Microeconomics, consumer surplus, etc.

    Lacking other information I would approximate the the "supply" and "demand" curves are straight lines on a pq coordinate system with p, the price, on the horizontal axis and q, the quantity", on the vertical axis. "Intercept of the supply curve on the p-axis is 10" so the line passes through (10, 0). "The equilibrium price is 30 and the equilibrium quantity is 2000" so the line also passes through (30, 2000). There exist a unique line, with equation q= ap+ b, for some numbers a and b, through those two points. 0= 10a+ b and 2000= 30a+ b. Solve those equations for a and b to determine the supply equation.

    Similarly "the intercept of demand curve in the p-axis is 60". So the demand curve passes through (60, 0) and (30, 2000). q= ap+ b with 0= 60a+ b and 2000= 30a+ b. Solve those equations for a and b to determine the demand equation.

    Now, do you know what "consumer surplus", "supplier surplus", and "total surplus" mean? Those are not mathematics terms, they are economics terms. They are probably defined in your text book.
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Consumers' Surplus for Calculus
    Posted in the Calculus Forum
    Replies: 9
    Last Post: Dec 9th 2012, 12:40 PM
  2. Consumers' surplus
    Posted in the Calculus Forum
    Replies: 2
    Last Post: Dec 11th 2009, 08:49 PM
  3. Replies: 3
    Last Post: Dec 11th 2009, 05:34 AM
  4. LP: slack and surplus
    Posted in the Math Topics Forum
    Replies: 0
    Last Post: Sep 17th 2009, 01:18 PM
  5. improper integrals question (consumer surplus)
    Posted in the Calculus Forum
    Replies: 2
    Last Post: Aug 4th 2009, 07:30 PM

/mathhelpforum @mathhelpforum