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Question 29 of 42

Q.Calculate consumer's surplus if the demand function p=122−5x−2x2p=122-5x-2x^2 and x=20x=20.

Tamil Nadu DgeTamil Nadu HSC (DGE) Commerce Board 2024Subjective· 2mImportance★★★★★
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At price p0=20p_0=20, x0=6x_0=6; CS=∫06p dx−p0x0=498−120=378CS=\int_0^{6}p\,dx-p_0x_0=498-120=378.

Here the given figure 2020 is taken as the market price p0=20p_0=20 (at x=20x=20 the demand price p=122−5x−2x2p=122-5x-2x^2 would be negative, so 2020 must be the price at which the quantity demanded x0x_0 is found). Solve 122−5x−2x2=20122-5x-2x^2=20:

2x2+5x−102=0 ⇒ x=−5±25+8164=−5±294 ⇒ x0=6.2x^2+5x-102=0\ \Rightarrow\ x=\frac{-5\pm\sqrt{25+816}}{4}=\frac{-5\pm 29}{4}\ \Rightarrow\ x_0=6.

Consumer's surplus is

CS=∫0x0p dx−p0x0=∫06(122−5x−2x2) dx−(20)(6).CS=\int_0^{x_0}p\,dx-p_0x_0=\int_0^{6}(122-5x-2x^2)\,dx-(20)(6).

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