Question: Using the previous graph, you can determine that Van is willing to supply his 6 th weekly roll for $ 1 . 5 0 .

Using the previous graph, you can determine that Van is willing to supply his 6th weekly roll for
$1.50
. Since he receives $2.25 per roll, the producer surplus earned from supplying the 6th roll is
$0.75
.
Suppose the price of cinnamon rolls were to rise to $3.00 per roll. At this higher price, Van would receive a producer surplus of
$0.75
from the 6th roll he sells.
The following graph plots the weekly market supply curve (orange line) for cinnamon rolls in a hypothetical small economy.
Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of cinnamon rolls is $2.25 per roll. Then, use the green point (triangle symbol) to shade the area representing additional producer surplus when the price rises to $3.00 per roll.

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