p = D(x) = 193 − 0.7x and the price-supply equation is given by p = S(x) = 0.3x + 143, where x is the number of dollhouses demanded/supplied when the price is p dollars each.

Question

find consumer and producer surplus

Answer 1

193-.7x= .4x +143

1.1x = 50

x=50/1.1 = 45.4545...

P= .4(50/1.1)+143=20/11+143= 1573/11=$144.82

CS= (193-144.82)(50)/2.2=48.18(50/2.2=$1,095.00

PS= 1.82(50/2.2)=$41.37