Alright so since you guys helped me oh so well with my first problem, why not try again? So heres my question. Roger is breeding tropical fish to sell to hobbyists. He finds that his supply curve looks like y1=0.06x^2+5 , where x is the number of fish, in hundreds, sold at y1 dollars each. Articles in his trade newsletters lead him to believe that the demand curve is y2=0.2x^2 - 4.8x + 31.
a) The equilibrium point is very close to seven fish. Calculate the producer surplus if Roger sells at y1.
b) What is the consumer surplus?
In my economics class this would have been simple to solve...but in calculus we have to use integration, and that is new for me this year, and my textbook is hard to understand. So if you could dumb it down into some steps for me it would be greatly appreciated. Thanks a lot!
2007-03-25
12:29:09
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