Question #95270

If the demand law is p = 85 - 4x– x2. what will be the consumer's surplus if : (i) xo =5 and (ii) po = 64

Expert's answer

The surplus is an area below demand function and above the line p=64. So we need to calculate the integral on [0; 5]:

"\\int85-4x-x^2-64 = 21x - 2x^2 - \\frac{x^3}{3} =\n21*5-2*5^2 - \\frac{5^3}{3} = 13.33(33)"

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