5/11 points | Provious Answers LCalcCon5 6.4.000. My Notes Ask Your The figure r

Question

5/11 points | Provious Answers LCalcCon5 6.4.000. My Notes Ask Your The figure represents a supply function with a fixed market price denoted by its corresponding point on the supply graph. Cate the values of and write sentences of interpretation for each of the following. q million pots 50 40 (15, 40 30 20 (2, 14) 10 p dollars per pot 20 15 (a) Producer revenue x million The total amount received from supplying 40 million pots at a market price of $ 15 per pot, is $ million. (b) Producer surplus million The difference between the revenue from supplying 40 million pots and the amount that must be received to supply 40 million pots is $ Xmillion. (c) Producer willingness and ability to receive million The minimum amount of money needed to supply 40 million pots is $ x million.

Explanation / Answer

p thousand dollars per saddle...
So, if market price = 1000, we are substituting p = 1

Since p = 1, it satisfies p < 5

So, 0 saddles ----> ANSWER

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6000 dollars
So, p = 6 thousand
And thus, p = 6

We use second function

2.194(1.295^6)

10.348 thousand saddles ----> ANSWER

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10 thousand saddles....
So, we are solving this

2.194 * (1.295^p) = 10

1.295^p = 10 / 2.194

1.295^p = 4.5578851412944394

Log both sides, we get :
p = ln(4.5578851412944394) / ln(1.295)
p = 5.868 ----> ANSWER

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Market price = 7500 dollars
So, p = 7.5

S = 2.194 * 1.295^7.5

S = 15.2496503586553352 thousand saddles produced

Total revenue = number of saddles produced * price per saddle

R = 15.2496503586553352 * 7.5

R = 114.372 million dollars -----> ANSWER

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