Solve a Consumers' or Producers' Surplus Problem. A sports watch has a price-demand equation given by P D(z) 95-2 0.21171z = dollars, which gives the price per watch when x watches are demanded. The price-supply equation for the watch is given by p=S(x)=0.7x+5 dollars, which gives the price per watch when watches are supplied. If the equilibrium quantity is 13, find the consumers' surplus and the producers' surplus. The consumers' surplus is (Your answer must begin with $.) The producers' surplus is (Your answer must begin with S.)

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter19: Elasticity
Section: Chapter Questions
Problem 11QP
Question
Solve a Consumers' or Producers' Surplus Problem.
A sports watch has a price-demand equation given by
P D(z) 95-2 0.21171z
=
dollars, which gives the price per watch when x watches are demanded. The price-supply equation for the watch is given by
p=S(x)=0.7x+5
dollars, which gives the price per watch when watches are supplied. If the equilibrium quantity is 13, find the consumers' surplus and the producers' surplus.
The consumers' surplus is
(Your answer must begin with $.)
The producers' surplus is
(Your answer must begin with S.)
Transcribed Image Text:Solve a Consumers' or Producers' Surplus Problem. A sports watch has a price-demand equation given by P D(z) 95-2 0.21171z = dollars, which gives the price per watch when x watches are demanded. The price-supply equation for the watch is given by p=S(x)=0.7x+5 dollars, which gives the price per watch when watches are supplied. If the equilibrium quantity is 13, find the consumers' surplus and the producers' surplus. The consumers' surplus is (Your answer must begin with $.) The producers' surplus is (Your answer must begin with S.)
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