Consider a perfectly competitive market for frozen meals. The demand for frozen meals is given by Pd = 134 - 4Q and the supply of frozen meals is given by Ps = 19 + Q. What is the value of Consumer Surplus at the market equilibrium?[Round your answer to 2 decimal places]

To find the Consumer Surplus, we first need to find the equilibrium price and quantity. In a perfectly competitive market, equilibrium is achieved when quantity demanded equals quantity supplied. So, we set Pd = Ps.

134 - 4Q = 19 + Q

Solving this equation for Q gives us the equilibrium quantity:

5Q = 115 Q = 23

Substitute Q = 23 into either the demand or supply equation to find the equilibrium price. Using the demand equation:

P = 134 - 4*23 P = 134 - 92 P = 42

Consumer surplus is the area of the triangle formed by the demand curve (from the price axis to the equilibrium price) and the price axis. The formula for the area of a triangle is 1/2 * base * height.

In this case, the base is the quantity (Q = 23) and the height is the difference between the maximum price consumers are willing to pay (P = 134) and the equilibrium price (P = 42).

Consumer Surplus = 1/2 * 23 * (134 - 42) Consumer Surplus = 1/2 * 23 * 92 Consumer Surplus = 1058

So, the value of Consumer Surplus at the market equilibrium is 1058.00.

To find the Consumer Surplus, we first need to find the equilibrium price and quantity. In a perfectly competitive market, equilibrium is achieved when quantity demanded equals quantity supplied. So, we set Pd = Ps.

134 - 4Q = 19 + Q

Solving this equation for Q gives us the equilibrium quantity:

5Q = 115 Q = 23

Substituting Q = 23 into either the demand or supply equation will give us the equilibrium price. Let's use the demand equation:

P = 134 - 4*23 P = 134 - 92 P = 42

Consumer surplus is the area of the triangle formed by the demand curve, the price axis, and the line representing the price level. The formula for the area of a triangle is 1/2 * base * height.

In this case, the base of the triangle is the quantity (Q = 23) and the height is the difference between the maximum price consumers are willing to pay (the intercept of the demand curve, P = 134) and the equilibrium price (P = 42).

Consumer Surplus = 1/2 * Q * (Pmax - Peq) Consumer Surplus = 1/2 * 23 * (134 - 42) Consumer Surplus = 1/2 * 23 * 92 Consumer Surplus = 1058

So, the value of Consumer Surplus at the market equilibrium is 1058.

To find the Consumer Surplus, we first need to find the equilibrium price and quantity. In a perfectly competitive market, equilibrium is achieved when the quantity demanded equals the quantity supplied. So, we set Pd = Ps.

134 - 4Q = 19 + Q

Solving this equation for Q gives us the equilibrium quantity:

134 - 19 = 4Q + Q

115 = 5Q

Q = 115 / 5

Q = 23

Substitute Q = 23 into either the demand or supply equation to find the equilibrium price. Let's use the demand equation:

P = 134 - 4*23

P = 134 - 92

P = 42

The Consumer Surplus is the area of the triangle formed by the demand curve, the price axis, and the line representing the equilibrium price. The formula for the area of a triangle is 1/2 * base * height.

In this case, the base of the triangle is the difference between the maximum price consumers are willing to pay (the price at Q = 0) and the equilibrium price. The height is the equilibrium quantity.

Base = 134 - 42 = 92 Height = 23

Consumer Surplus = 1/2 * 92 * 23

Consumer Surplus = 1058

So, the value of the Consumer Surplus at the market equilibrium is 1058.