1. Business
  2. Economics
  3. could you help me finish this whole question...

Question: could you help me finish this whole question...

Question details

4. Producer surplus for an individual and a market Suppose the market for cheesecake is a perfectly competitive market-that is, sellers take the market price as given. Bob owns a restaurant where he sells cheesecake. The following graph shows Bobs weekly supply curve, represented by the orange line. Point A represents a point along his supply curve. The price of cheesecake is $3.00 per slice, as shown by the horizontal black line Bobs wieekly Supply 6.75 AIN 6.25 .00 Price 2.25 0.75 Supply 0 246 8 012 4 16 1 20 QUANTITY (Slices of cheesecake)From the previous graph, you can tell that Bob is willing to supply his 8th slice of cheesecake for the 8th slice of cheesecake is S Suppose the price of cheesecake were to rise to $3.75 per slice. At this higher price, Bob would receive each week. Since he receives $3.00 per slice, the producer surplus he gains from supplying a producer surplus of from the 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.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. Small Economys waekly Supply 7.50 6 75 Initial PS (P-$3.00) 25 Additional PS (P-$3.75) P-53.75 3.75 2.25 1I .75 Supply 0 20 4060 80 00 120 140 160 80 200 QUANTITY (Thausands of slices of cheesecake) Grade It Now Save & Continue Continue without saving could you help me finish this whole question?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution