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**7.5 Area Between Two Curves**

Find Area Between 2 Curves Find Consumer Surplus Find Producer Surplus

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**Area between 2 curves Let f and g be continuous functions and suppose**

that f (x) ≥ g (x) over the interval [a, b]. Then the area of the region between the two curves, from x = a to x = b, is

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**Example: Find the area of the region that is bounded by the graphs of**

First, look at the graph of these two functions. Determine where they intersect. (endpoints not given)

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Example (continued): Second, find the points of intersection by setting f (x) = g (x) and solving.

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**ò Example (concluded):**

Lastly, compute the integral. Note that on [0, 2], f (x) is the upper graph. ( 2 x + 1 ) - é ë ù û ò d = 3 ê ú æ è ç ö ø ÷ 4 8

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DEFINITION: The equilibrium point, (xE, pE), is the point at which the supply and demand curves intersect. It is that point at which sellers and buyers come together and purchases and sales actually occur.

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DEFINITION: Suppose that p = D(x) describes the demand function for a commodity. Then, the consumer surplus is defined for the point (Q, P) as

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**Example: Find the consumer surplus for the demand function given by**

When x = 3, we have Then, C o n s u m e r S p l = D x ( ) d - E × ò 5 2 3 4 1 +

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Example(concluded): p. 453, formula 12, there is no “+C”

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DEFINITION: Suppose that p = S(x) is the supply function for a commodity. Then, the producer surplus is defined for the point (Q, P) as

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**ò ( ) Example : Find the producer surplus for Find y when x is 3.**

When x = 3, Then, P r o d u c e S p l s = x E × - ( ) ò 3 1 5 2 +

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Example (continued):

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**Example: Given find each of the following: a) The equilibrium point.**

b) The consumer surplus at the equilibrium point. c) The producer surplus at the equilibrium point.

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Example (continued): a) To find the equilibrium point, set D(x) = S(x) and solve. Thus, xE = 2. To find pE, substitute xE into either D(x) or S(x) and solve.

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**Example (continued): If we choose D(x), we have**

Thus, the equilibrium point is (2, $9).

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Example (continued): b) The consumer surplus at the equilibrium point is

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**ò Example (concluded):**

b) The producer surplus at the equilibrium point is 2 × 9 - ( x + 3 ) d = 1 8 é ë ê ù û ú ò æ è ç ö ø ÷ 4 6 $ 7 .

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Supply and Demand How Markets Work?. MARKETS AND COMPETITION The terms supply and demand refer to the behavior of people......as they interact with one.

Supply and Demand How Markets Work?. MARKETS AND COMPETITION The terms supply and demand refer to the behavior of people......as they interact with one.

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