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 th weekly roll for
$
Since he receives $ per roll, the producer surplus earned from supplying the th roll is
$
Suppose the price of cinnamon rolls were to rise to $ per roll. At this higher price, Van would receive a producer surplus of
$
from the th 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 $ per roll. Then, use the green point triangle symbol to shade the area representing additional producer surplus when the price rises to $ per roll.
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