bbmp1103 - sept 2011 exam workshop - part 9

BBMP 1103Mathematic Management

Exam Preparation Workshop Sept 2011Part 9 – Consumer’s Surplus and

Critical Point

Presented By: Dr Richard Ng

26 Nov 20112ptg – 4ptg

Prepared by Dr Richard Ng (2011) Page 2

9. Focus on Consumers’ Surplus

There are consumers who are willing to pay more than the equilibrium price, so they benefit from the lower equilibrium price. The area of A represents the consumers’ surplus.

Question: 20 (January 2011)

Prepared by Dr Richard Ng (2011) Page 3

p = 200 – q2

p = 6q + 160

6q + 160 = 200 – q2

q2 + 6q – 40 = 0

Suggested Answers:

(q + 10)(q – 4) = 0

q = -10 and q = 4

p = 200 – (4)2 = 200 – 16 = 184

Prepared by Dr Richard Ng (2011) Page 4

Prepared by Dr Richard Ng (2011) Page 5

Prepared by Dr Richard Ng (2011) Page 6

10. Focus on Critical Point

Prepared by Dr Richard Ng (2011) Page 7

Prepared by Dr Richard Ng (2011) Page 8

Prepared by Dr Richard Ng (2011) Page 9

Prepared by Dr Richard Ng (2011) Page 10

Prepared by Dr Richard Ng (2011) Page 11

Question: 21 (May 2010)

Prepared by Dr Richard Ng (2011) Page 12

Question: 22 (September 2009)

End ofExam

Workshop

Prepared by Dr Richard Ng (2011) Page 13