he management of the Titan Tire Company has determined that the quantity demande

Question

he management of the Titan Tire Company has determined that the quantity demanded x of their Super Titan tires/week is related to the unit price p by the relation

p = 144 ? x2

where p is measured in dollars and x is measured in units of a thousand. Titan will make x units of the tires available in the market if the unit price is

p = 48 +

x2

dollars. Determine the consumers' surplus and the producers' surplus when the market unit price is set at the equilibrium price. (Round your answers to the nearest dollar.)

Explanation / Answer

First, the equilibrium point is where the two prices are equal. Solving
144 - x

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