Yes, we can use integrals to find the area under a curve in economics! Here are a few ways it can help:
Consumer Surplus: This is the area between the demand curve and the price level. Think of it like this: if the demand curve is shown by the equation (p = 20 - q) (where (p) is the price and (q) is the quantity), we can use integrals to calculate how much extra value consumers get from buying a product at a lower price than they are willing to pay.
Producer Surplus: Just like consumers, producers can also gain extra value. Producer surplus is the area above the supply curve up to the market price. By using integrals, we can measure how much more money producers make compared to their minimum price.
These examples show how integrals give us important information about how well the economy works and how resources are used!
Yes, we can use integrals to find the area under a curve in economics! Here are a few ways it can help:
Consumer Surplus: This is the area between the demand curve and the price level. Think of it like this: if the demand curve is shown by the equation (p = 20 - q) (where (p) is the price and (q) is the quantity), we can use integrals to calculate how much extra value consumers get from buying a product at a lower price than they are willing to pay.
Producer Surplus: Just like consumers, producers can also gain extra value. Producer surplus is the area above the supply curve up to the market price. By using integrals, we can measure how much more money producers make compared to their minimum price.
These examples show how integrals give us important information about how well the economy works and how resources are used!