A sweet shop sells boxes of laddoos. The demand function is p(x) = 100 - x², where x is the quantity. If the equilibrium quantity is 6 boxes, what is the Consumer Surplus? (Assume equilibrium price is p(6))
A sweet shop sells boxes of laddoos. The demand function is p(x) = 100 - x², where x is the quantity. If the equilibrium quantity is 6 boxes, what is the Consumer Surplus? (Assume equilibrium price is p(6))
- A. ₹ 144
- B. ₹ 216
- C. ₹ 72
- D. ₹ 288
Answer: A) ₹ 144
Explanation: Equilibrium price = 100 - 36 = 64. Consumer Surplus = ∫[0 to 6] (100 - x² - 64) dx = ∫[0 to 6] (36 - x²) dx = [36x - x³/3] from 0 to 6 = 216 - 72 = 144.
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