Question 13 Marks
If the demand curve is given by $D(x)=50-0.06 x^2$. Find the surplus or profit of the consumers if the level of sale amounts to twenty units.
Answer
View full question & answer→As the number of units is 20 ,its price rises up $=D(20)$ $=50-0.06 \times 20^2=26$.
The profit of consumer's:
$\begin{aligned} C S & =\int_0^{Q_e} D(x) d x-Q_e \cdot P_e \\ & =\int_0^{20}\left(50-0.06 x^2\right) d x-20.26 \\ & =50[x]_0^{20}-0.06\left[\frac{x^3}{3}\right]_0^{20}-520 \\ & =50(20-0)-0.06\left[\frac{20^3}{3}-0\right]-520\end{aligned}$
$\begin{array}{l}=50(20)-0.06\left[\frac{20^3}{3}\right]-520 \\ =1000-160-520 \\ =1000-680 \\ =320\end{array}$
The consumer gain is ₹ 320 , if the level of sales is twenty units.
The profit of consumer's:
$\begin{aligned} C S & =\int_0^{Q_e} D(x) d x-Q_e \cdot P_e \\ & =\int_0^{20}\left(50-0.06 x^2\right) d x-20.26 \\ & =50[x]_0^{20}-0.06\left[\frac{x^3}{3}\right]_0^{20}-520 \\ & =50(20-0)-0.06\left[\frac{20^3}{3}-0\right]-520\end{aligned}$
$\begin{array}{l}=50(20)-0.06\left[\frac{20^3}{3}\right]-520 \\ =1000-160-520 \\ =1000-680 \\ =320\end{array}$
The consumer gain is ₹ 320 , if the level of sales is twenty units.


