Problem

The supply function for oil is given (in dollars) by $S(q)$, and the demand function is given (in dollars) by $D(q)$. \[ S(q)=q^{2}+7 q, \quad D(q)=1020-19 q-q^{2} \] b. Find the point at which supply and demand are in equilibrium. The equilibrium point is $\square$. (Type an ordered pair.) c. Find the consumers' surplus. The consumers' surplus is $\$ \square$. (Type an integer or decimal rounded to the nearest hundredth as needed.) d. Find the producers' surplus. The producers' surplus is $\$ \square$. (Type an integer or decimal rounded to the nearest hundredth as needed.)

Solution

Step 1 :Set the supply function equal to the demand function: \(q^2 + 7q = 1020 - 19q - q^2\)

Step 2 :Rearrange the equation to get a quadratic equation: \(2q^2 + 26q - 1020 = 0\)

Step 3 :Use the quadratic formula to solve for q: \(q = \frac{-b \pm \sqrt{b^2 - 4ac}}{2a}\)

Step 4 :Substitute the values of a, b, and c into the quadratic formula: \(q = \frac{-26 \pm \sqrt{(26)^2 - 4*2*(-1020)}}{2*2}\)

Step 5 :Solve the equation to get two possible values for q, but discard the negative value: \(q = 15\)

Step 6 :Substitute q = 15 into the supply function to get the price: \(S(15) = (15)^2 + 7*15 = 330\)

Step 7 :The equilibrium point is \(\boxed{(15, 330)}\)

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Source: https://solvelyapp.com/problems/GWbRkhZmQ3/

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