Explain any two economic applications of Definite Integral. Use examples to illustrate the applications.

The definite integral is a powerful tool in calculus that has numerous economic applications. It is used to measure a variety of economic concepts, from total revenue to consumer surplus. In this essay, we will explore two such applications of the definite integral in economics, namely, computing consumer and producer surplus, and determining the total revenue of a firm.

1. Computing Consumer and Producer Surplus

Consumer and producer surplus are two important concepts in economics that are used to measure the welfare of consumers and producers, respectively. Consumer surplus is defined as the difference between the maximum amount a consumer is willing to pay for a good or service and the actual amount they pay. Producer surplus, on the other hand, is defined as the difference between the minimum price a producer is willing to accept for a good or service and the actual price they receive.

The concept of consumer and producer surplus can be illustrated with a simple example. Suppose there is a market for ice cream, and the demand and supply curves are given by:

Demand: Qd = 100 - 2P Supply: Qs = 10P - ________ ____ ______ _______ _____ _____ _______ ___ _________ ________ __________ ________.
______ _________ _______ ____ ________ _________ _____ ____ ___ __________ _________.
______ _____ _______ ____ ________ __________ ______ ___ ___ __________ __________ _______.
_______ __________ ____ ____ _________ _________ _____ _____ _____ ______ ________ ___.
__________ ______ ______ ___ ____ ______ ________ ________ ____ ___.
___ _________ _____ ______ ___ ____ _________ __________ ___ _______.
____ ________ ___ _______ _______ ________ _________.
___ _______ ______ _____ __________ __________ __________ ____ ___ ________ ________ _______.
________ ______ _________ ______ _____ __________.
________ ____ _______ _________ _____ ____ _____ ______ _______ _____ ___ _____.
________ __________ _______ __________ ________ ______ ______ _____.
_________ __________ ___ __________ __________ _____ _________ ______ ___ ___ _____ ____.
_______ ____ _______ ________ _____ ____ _________.
____ __________ ________ ___ ________ ______ ________ _________ _______ ___ _________.
________ ________ ______ _____ _____ _______ _______ _______.
___ __________ ______ __________ __________ ____ __________ ___ __________ __________ ________ _____.
_________ ______ ________ __________ _____ __________ ______ _________ ____ ______ ____.
___ _____ _______ ______ ___.
______ _______ __________ ______ ___ _______ ________ _________ ______ ____ ________ _____.
______ _____ ________ __________ ___ ______ _____ _______ _________ ___.
_________ _____ __________ ___ ______ _______.
__________ ______ __________ _____ _________ ___ ______ _______ ______ ______ _________.
_________ ___ __________ ________ _______.
_____ __________ ____ _______ _______ _____ ______ __________ __________.
_________ ______ ______ _____ _________ _________.
__________ _________ _____ _____ _____ __________ _______.
_________ __________ ____ _____ _____ _______ __________ ___ ___.
______ _________ ______ ___ ____ _______ ____ _________ ___.
______ __________ _____ __________ _________ ____ _____ ________ _______ ____.
_________ ________ _______ ______ ______.
__________ ____ ___ ______ ___ ________ ___ ______ _________ __________ _____.
________ __________ ______ __________ _________ ____ ________ ___ _________ ________ __________ _______.
________ ________ ____ ______ _______ _________.
_______ _______ _____ _______ _______ ____ ___ __________.
__________ ____ _____ _____ ___ _________.
_________ ___ ________ __________ ___ _________ _________ ______ __________ ________ ______.
_______ _____ __________ ______ ____.
___ _______ ______ _____ ______ ___ _______ ___ ___ _______ _______.
______ ________ _____ __________ ______ _____ __________ _____ __________ ___ ________ __________.
______ __________ ______ ____ _________.
______ ____ _________ ___ ___ _________ _______ _______ ______.
_______ ______ ________ ______ ___ ___ _____ ____ _________ ___ _____.
____ _____ __________ __________ __________ ___ ______ ________ _________.
______ ___ __________ _____ _______ _________ ________ _______ _______.
___ ______ ________ __________ ____ _________ _________ _______ ______ __________ ______.
_______ _________ __________ __________ _______ _________.
_______ _____ ____ _________ ______.
____ ____ ______ ___ ____ ________ ____ ____ ____ _____ ___ __________.
__________ __________ _______ ____ ________ _____ ___ ______ ___ __________.
____ ____ ___ ______ ______ _______ ______ ______ __________.
_________ __________ ___ ______ _____ ______ ___ ___ _______ _______ ______.
_________ __________ _____ ______ __________ ____ ___ ___ _________ _______ _____ _________.
__________ ____ _________ ___ ________ ____.
_______ _____ ________ __________ ______ __________.
____ ________ _________ ______ ______ ____ _________ ____ _______ ______ _______ _______.
______ ____ ___ ______ _______ _________ _________ ______ _____ _______ _____ _______.
_______ ________ ______ _____ _____ _________ ____ ___ _____ _________ ___ _______.
______ __________ ____ ________ _________ ___ ________ _______ ________ ___ _______ ______.
_____ ________ ____ ___ _____ ________ ______ __________ _____ ________.
___ ______ ________ ____ _____.
____ ________ ____ _________ ________ __________.
___ ____ ______ ________ ________.
_________ ________ ____ __________ ________.
_____ _________ ___ __________.
Get Full Answer on WhatsApp