• Under these conditions, what is the consumer surplus? 464 x million of gallons Round your answer to closest whole number • Under these conditions, what is the producer surplus? | 205 X million of gallons Round your answer to closest whole number

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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How do I find the consumer and producer surplus?

The table below shows how supply and demand of gasoliine vary depending on the price:
Demand (million of gal.)
Price ($/gal)
Supply (million of gal.)
1
798
507
1.2
700
550
1.4
640
600
1.6
580
635
1.9
524
660
2.2
450
680
2.4
430
700
2.6
420
720
2.8
390
735
3.1
375
787
Transcribed Image Text:The table below shows how supply and demand of gasoliine vary depending on the price: Demand (million of gal.) Price ($/gal) Supply (million of gal.) 1 798 507 1.2 700 550 1.4 640 600 1.6 580 635 1.9 524 660 2.2 450 680 2.4 430 700 2.6 420 720 2.8 390 735 3.1 375 787
• Assume that Supply has a quadratic relationship with the price. Find this relationship (the help buttons contain an
article to compute trend-lines in Excel):
S(p) = -24.165p² + 216.671p + 329.385
Round your answer to 3 decimal places
• Assume that the Demand has a quadratic relationship with the price. Find this relationship (the help button links to
an article to compute trend-lines in Excel):
D(p) = 89.812p? – 559.458p+ 1253.241
Round your answer to 3 decimal places
• Use the trendlines to find the price corresponding to the equlibrium price between supply and demand:
1.54
$ per gallon Round your answer to 2 decimal places
• From the price above what is the equilibrum quantity between supply and demand:
606
million of gallons Round your answer to closest whole number
• Under these conditions, what is the consumer surplus?
464
X million of gallons Round your answer to closest whole number
• Under these conditions, what is the producer surplus?
205
X million of gallons Round your answer to closest whole number
Transcribed Image Text:• Assume that Supply has a quadratic relationship with the price. Find this relationship (the help buttons contain an article to compute trend-lines in Excel): S(p) = -24.165p² + 216.671p + 329.385 Round your answer to 3 decimal places • Assume that the Demand has a quadratic relationship with the price. Find this relationship (the help button links to an article to compute trend-lines in Excel): D(p) = 89.812p? – 559.458p+ 1253.241 Round your answer to 3 decimal places • Use the trendlines to find the price corresponding to the equlibrium price between supply and demand: 1.54 $ per gallon Round your answer to 2 decimal places • From the price above what is the equilibrum quantity between supply and demand: 606 million of gallons Round your answer to closest whole number • Under these conditions, what is the consumer surplus? 464 X million of gallons Round your answer to closest whole number • Under these conditions, what is the producer surplus? 205 X million of gallons Round your answer to closest whole number
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