MAT136H1 Lecture Notes - Economic Surplus
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MAT136H1 Full Course Notes
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, where is the demand amount (ie. number of product sold) Question #2 (medium): consumer surplus given a demand curve. Consumer surplus is given by ( )( ) [ ( ) ] And so the total saving is [ ( ) ] The demand function is given as , where represents the number sold. Find the consumer surplus when the selling price is. Since the number of units sold is not directly given from the question, it needs to be determined in order to apply the integral. At the selling price of ; divide both sides by 100: So we can take to be the number sold. ; apply to both sides to bring the exponent down: ; then.
