EXERCISES TOPIC 4

1) The price that consumers are willing to pay for x units of a product is given by
𝑦 = (𝑥 − 4)2 and the price that producers are willing to accept for x units is given
by 𝑦 = 𝑥 2 + 3𝑥 + 5 .

a) Find the equilibrium price and quantity.

b) Calculate consumer surplus and producer surplus at equilibrium.
c) Make a sketch of the two functions and shade the area of the CS and
the PS.

2) The supply function for oil is given (in dollars) by 𝑆(𝑞) = 𝑞 2 + 26𝑞, and the
demand function is given (in dollars) by 𝐷(𝑞) = 1122 − 2𝑞 2 − 43𝑞

a) Find the equilibrium price and quantity.

b) Calculate consumer surplus and producer surplus at equilibrium.
c) Make a sketch of the two functions and shade the area of the CS and the
PS.

3) The demand and supply curves for a good are given respectively by the
equations 𝑃 = 300𝑒 −0.2𝑄 and 𝑃 = 2𝑒 0.8𝑄

a) Find the equilibrium price and quantity.

b) Calculate consumer surplus and producer surplus at equilibrium.

4) Let 𝑓(𝑥) = 𝑥 3 − 1 defined in the interval [−2,2].

a) Sketch the graph of 𝑓(𝑥) = 𝑥 3 − 1
b) Calculate the areas above and below the x-axis separately.
c) Calculate the net area enclosed.

5) The marginal cost for a product is given by the equation

𝑀𝐶 = 𝑄 2 − 42𝑄 + 200.
Find the equation of the total cost function if fixed costs are 900.

6) Evaluate the following definite integrals:

1 9
a) ∫0 𝑒 5𝑥 𝑑𝑥 e) ∫4 √𝑥 𝑑𝑥
1 1 21
b) ∫0 𝑒𝑥
𝑑𝑥 f) ∫1 √2𝑥 + 7 𝑑𝑥
3 2𝑥 2 −𝑥 1
c) ∫2 𝑥 2 𝑑𝑥 g) ∫0 (3𝑥 − 1)4 𝑑𝑥
2 1
d)
1
∫−1(𝑥 4 − 5𝑥 + 8) 𝑑𝑥 h) ∫1 (𝑥 5 + 𝑥) 𝑑𝑥