1) Given the below functions for supply and demand: Supply: P= In (Q³ - 2) Demand: P = 18e-arctan (QD) a) Find the total welfare using the market equilibrium condition (to find the equilibrium point you need to use Newton's method at some point): b) Find the equilibrium price using the welfare optimization method directly; verify whether the results from part A & B are consistence.

1) Given the below functions for supply and demand: Supply: P= In (Q³ - 2) Demand: P = 18e-arctan (QD) a) Find the total welfare using the market equilibrium condition (to find the equilibrium point you need to use Newton's method at some point): b) Find the equilibrium price using the welfare optimization method directly; verify whether the results from part A & B are consistence.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.3P

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