(a) Find the consumer's surplus for the demand function p=25−x−x2p = 25 - x - x^2, where the prevailing market price p0=19p_0 = 19. OR (b) Solve the following initial value differential equation : xdydx=y−xtan⁡(yx)x \frac{dy}{dx} = y - x \tan(\frac{y}{x}), given y=π2y = \frac{\pi}{2} when x=1x = 1.

Answer: The consumer's surplus is 223\frac{22}{3}.

Step-by-step solution

Step 1: Find the quantity demanded at market price

To find the quantity demanded (x0x_0) at the prevailing market price (p0=19p_0 = 19), we set the demand function equal to the market price and solve for xx. This gives us a quadratic equation.

Step 2: Solve the quadratic equation for x

Rearranging the equation 19=25−x−x219 = 25 - x - x^2 gives x2+x−6=0x^2 + x - 6 = 0. Factoring this quadratic equation yields (x+3)(x−2)=0(x+3)(x-2) = 0. Since quantity cannot be negative, we take the positive value, x0=2x_0 = 2.

Step 3: Apply the consumer's surplus formula

The consumer's surplus (CS) is calculated by integrating the difference between the demand function p(x)p(x) and the market price p0p_0 from 00 to the quantity demanded x0x_0.

Step 4: Substitute values and integrate

Substitute the demand function p(x)=25−x−x2p(x) = 25 - x - x^2 and the market price p0=19p_0 = 19 into the formula. Simplify the integrand to 6−x−x26 - x - x^2 and then perform the integration.

Step 5: Evaluate the definite integral

Evaluate the definite integral by plugging in the upper limit x=2x=2 and the lower limit x=0x=0. Subtract the value at the lower limit from the value at the upper limit to find the consumer's surplus.

More from this chapter

All Application of Integrals solutions →

Solve your own maths question free →