The demand function for a certain kind of mattress is given by
p = 600e^−0.04x
where p is the unit price in dollars and x (in units of a hundred) is the quantity demanded each month.
(a) Find the number of mattresses demanded per month if the unit price is
set at $250 per mattress.
(b) Use the results of part (a) to find the consumers’ surplus if the selling
price is set at $250 per mattress.
(a) 600e^(-0.04x) = 250
e^(-0.04x) = 5/12
-0.04x = ln(5/12)
x = 25 ln(12/5)
(b) again, what is the definition of "consumers' surplus"?