The market equilibrium is the point where the demand and supply functions are equal
The producer's surplus at market equilibrium for a product is #105
The functions are given as:
[tex]p = 121 - x^2[/tex]
[tex]p = x^2 + 6x + 65[/tex]
Equate both functions
[tex]x^2 + 6x + 65 = 121 - x^2[/tex]
Collect like terms
[tex]x^2 + x^2 + 6x + 65 - 121 = 0[/tex]
Evaluate the like terms
[tex]2x^2 + 6x -56 = 0[/tex]
Divide through by 2
[tex]x^2 + 3x -28 = 0[/tex]
Expand
[tex]x^2 + 7x - 4x - 28 = 0[/tex]
Factorize
[tex]x(x + 7) - 4(x +7)= 0[/tex]
Factor out x + 7
[tex](x - 4)(x +7)= 0[/tex]
Solve for x
x = 4 or x = -7
The number of units cannot be negative,
So, we have:
x = 4
Substitute 4 for x in [tex]p = 121 - x^2[/tex]
[tex]p = 121 - 4^2[/tex]
p = 105
Hence, the producer's surplus at market equilibrium for a product is #105
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