Question: Using the previous graph, you can determine that Yakov is willing to supply his 2 nd weekly cupcake for . Since he receives $ 2
Using the previous graph, you can determine that Yakov is willing to supply his nd weekly cupcake for Since he receives $ per cupcake, the producer surplus earned from supplying the nd cupcake is
Suppose the price of gourmet cupcakes were to rise to $ per cupcake. At this higher price, Yakov would receive a producer surplus of from the nd cupcake he sells.
The following graph plots the weekly market supply curve orange line for gourmet cupcakes in a hypothetical small economy.
Use the purple point diamond symbol to shade the area representing producer surplus PS when the price P of gourmet cupcakes is $ per cupcake. Then, use the green point triangle symbol to shade the area representing additional producer surplus when the price rises to $ per cupcake.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
