The sum of consumer surplus and producer surplus is called the total surplus; it is one measure economists use as an indicator of the economic health of a society. Total surplus is maximized when the market for a good is in equilibrium.

(a) The demand function for an electronics company’s car stereos is p(x) = 228.4 – 18x and the supply function is ps (x) = 27x + 57.4, where x is measured in thousands. At what quantity is the market for the stereos in equilibrium?

(b) Compute the maximum total surplus for the stereos.