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Question: attempts average3 7 producer surplus for an individual and a...

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Attempts: Average:/3 7. Producer surplus for an individual and a market Suppose the market for apple pie is a perfectly competitive market-that is, sellers take the market price as given. Jacques owns a restaurant where he sells apple pie. The following graph shows Jacquess weekly supply curve, represented by the orange line. Point A represents a point along his supply curve. The price of apple pie is $3.00 per slice, as shown by the horizontal black line. Jacquess Weekly Supply 7.50 6.75 6.00 525 450 O Type here to search w3

Jacquess Weekly Supply 7.50 6.75 6.00 525 4.50 3.75 3.00 Price A. 1.50 0 2 4 6 8 10 12 14 16 18 20 QUANTITY (Slices of apple pie) O Type here to search

From the previous graph, you can tell that Jacques is willing to supply his 8th slice of apple pie for S per slice, the producer surplus he gains from supplying the 8th slice of apple pie is S each week. Since he receives $3.00 Suppose the price of apple pie were to rise to $3.75 per slice. At this higher price, Jacques would receive a producer surplus of S 8th slice of apple pie he sells from the The following graph shows the weekly market supply of apple pie in a small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of apple pie 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. Small Economys Weekly Supply 7.50 6.75 O Type here to search

PRICE (Dollars per slice

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