Question: Using the previous graph, you can determine that Yakov is willing to supply his 6 th weekly macaroon for . Since he receives $ 2
Using the previous graph, you can determine that Yakov is willing to supply his th weekly macaroon for Since he receives $ per macaroon, the producer surplus earned from supplying the th macaroon is
Suppose the price of macaroons were to rise to $ per macaroon. At this higher price, Yakov would receive a producer surplus of from the th macaroon he sells.
The following graph plots the weekly market supply curve orange line for macaroons in a hypothetical small economy.
Use the purple point diamond symbol to shade the area representing producer surplus PS when the price of macaroons is $ per macaroon. Then, use the green point triangle symbol to shade the area representing additional producer surplus when the price rises to $ per macaroon.
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