Question: Is this correct Using the previous graph, you can determine that Yakov is willing to supply his 600th pound for $1.00 . Since he receives
Is this correct
Using the previous graph, you can determine that Yakov is willing to supply his 600th pound for $1.00 . Since he receives $1.25 per pound, the producer surplus earned from supplying the 600th pound is $0.25 . Suppose the price of pork roast were to rise to $1.50 per pound. At this higher price, Yakov would receive a producer surplus of $0.50 from the 600th pound he sells. The following graph plots the weekly market supply curve (orange line) for pork roast in a hypothetical small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of pork roast is $1.25 per pound. Then, use the green point (triangle symbol) to shade the area representing additional producer surplus when the price rises to $1.50 per pound. ? Small Economy's Weekly Supply of Pork roast 3.00 2.75 2.50 Initial PS (P=$1.25) 2.25 A 2.00 1.75 Additional PS (P=$1.50) P=$1.50 1.50 PRICE (Dollars per pound) 1.25 P=$1.25 1.00 0.75 0.50 0.25 Supply 0 24 48 72 96 120 144 168 192 216 240 264 288 QUANTITY (Thousands of pounds)Step by Step Solution
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