p = 116 − 0.004x, The flashlight manufacturers will produce no flashlights if the price is $76 or less, and they will market 6,000 flashlights when the price is $100 per flashlight.

Question

find consumer and producer surplus

Answer 1

P=116-.004x is the demand curve

at P=116 no one buys anything

6000 supplied when P=100

0 supplied when P=76

P= (24/6000)(x-6000) +76 is the supply curve

=4x/1000 +52 = 115-.004x

(8)x/1000 = 63

x/125 =63

x= 7875 = equilibrium quantity supplied and demanded

P=115-.0004(7875= 115-3.15= $111.85= equilibrium Price

CS = area below the demand curve above the equilibrium price line

PS= area above the supply curve below the equilibrium price line

CS= (116-111.85)(7885)/2=$16,361.38

PS=(111.85-76)(7885)/2= $141,338.63