Determine the producers' surplus if the market price is set at $11/unit. (Round your answer to two decimal places.)

Question

Producers' Surplus

 A supplier of portable hair dryers will make x hundred units of hair dryers available in the market when the unit price is

p= square root of 100+1.4x

Answer 1

Let find demand: x = (p² - 100)/1.4 = 21/1.4 = 15.

PS = ∫₀¹⁵(11 - (100 + 1.4x)^1/2)dx = (11x - 2/3(100 + 1.4x)^3/2/1.4)₀¹⁵ = (165 - 2/3(100 + 21)^3/2/1.4) + 2/3·100^3/2/1.4 = $7.38