Science:Math Exam Resources/Courses/MATH105/April 2010/Question 02
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Question 02 

For a particular commodity, the demand curve is and the supply curve is Find the consumers' surplus and producers' surplus at the sale level A, where D(A) = S(A). 
Make sure you understand the problem fully: What is the question asking you to do? Are there specific conditions or constraints that you should take note of? How will you know if your answer is correct from your work only? Can you rephrase the question in your own words in a way that makes sense to you? 
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Hint 

How can you find the consumers' surplus and the producers' surplus? 
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Solution 

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Please rate my easiness! It's quick and helps everyone guide their studies. First we find the sale level A, where D(A) = S(A): The sale level must be positive, so A = 4. At this sale level, the price is p_{A} = 7. The consumer surplus is: The producer surplus is: 