each week. Since he receives $3.00 From the previous graph, you can tell that Kevin is willing to supply his 8th slice of cheesecake for $ per slice, the producer surplus he gains from supplying the 8th slice of cheesecake is $ from the Suppose the price of cheesecake were to rise to $3.75 per slice. At this higher price, Kevin would receive a producer surplus of $ 8th slice of cheesecake he sells. The following graph shows the weekly market supply of cheesecake in a small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of cheesecake is $3.00 per slice. Then, use the green point (triangle symbol) to shade the area representing additional producer surplus when the price rises to $3.75 per slice.

each week. Since he receives $3.00 From the previous graph, you can tell that Kevin is willing to supply his 8th slice of cheesecake for $ per slice, the producer surplus he gains from supplying the 8th slice of cheesecake is $ from the Suppose the price of cheesecake were to rise to $3.75 per slice. At this higher price, Kevin would receive a producer surplus of $ 8th slice of cheesecake he sells. The following graph shows the weekly market supply of cheesecake in a small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of cheesecake is $3.00 per slice. Then, use the green point (triangle symbol) to shade the area representing additional producer surplus when the price rises to $3.75 per slice.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 20P

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