Question

Calculate the producers' surplus (in dollars) for the supply equation at the indicated unit price
p.
(Round your answer to the nearest cent.)
p = 7 + 2q1⁄3; p = 20

Answer 1

Answer:

Step-by-step explanation:

Given the equation of the unit price expressed as;

p = 7 + 2q1⁄3, we are to find the value of q when p = 20

20 = 7 + 2q1⁄3

20-7 = 2q/3

13 = 2q/3

Cross multiply

13 * 3 = 2q

39 = 2q

q = 39/2

q = $19.5

Hence the producer surplus is 1950 cents