7. Producer surplus for an individual and a market Suppose the market for cinnamon rolls is perfectly competitive, so sellers take the market price as given. Paolo manages a bakery that offers cinnamon rolls for sale. The following graph plots Paolo's weekly supply curve (orange line). Point A represents a point along his supply curve. The price of cinnamon rolls is $2.25 per roll, which is given by the black horizontal line. PRICE (Dollars per roll) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 Price 1.50 A 0.75 Supply Paolo's Weekly Supply 0 0 2 4 6 8 10 12 14 16 18 20 22 24 QUANTITY (Rolls) (?) Using the previous graph, you can determine that Paolo is willing to supply his 6th weekly roll for $ producer surplus earned from supplying the 6th roll is $ Since he receives $2.25 per roll, the Suppose the price of cinnamon rolls were to rise to $3.00 per roll. At this higher price, Paolo would receive a producer surplus of $ 6th roll he sells. from the The following graph plots the weekly market supply curve (orange line) for cinnamon rolls in a hypothetical small economy.
7. Producer surplus for an individual and a market Suppose the market for cinnamon rolls is perfectly competitive, so sellers take the market price as given. Paolo manages a bakery that offers cinnamon rolls for sale. The following graph plots Paolo's weekly supply curve (orange line). Point A represents a point along his supply curve. The price of cinnamon rolls is $2.25 per roll, which is given by the black horizontal line. PRICE (Dollars per roll) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 Price 1.50 A 0.75 Supply Paolo's Weekly Supply 0 0 2 4 6 8 10 12 14 16 18 20 22 24 QUANTITY (Rolls) (?) Using the previous graph, you can determine that Paolo is willing to supply his 6th weekly roll for $ producer surplus earned from supplying the 6th roll is $ Since he receives $2.25 per roll, the Suppose the price of cinnamon rolls were to rise to $3.00 per roll. At this higher price, Paolo would receive a producer surplus of $ 6th roll he sells. from the The following graph plots the weekly market supply curve (orange line) for cinnamon rolls in a hypothetical small economy.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter3: Demand And Supply
Section: Chapter Questions
Problem 55P: Table 3.9 illustrates the markets demand and supply for cheddar cheese. Graph the data and find the...
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![7. Producer surplus for an individual and a market
Suppose the market for cinnamon rolls is perfectly competitive, so sellers take the market price as given. Paolo manages a bakery that offers
cinnamon rolls for sale. The following graph plots Paolo's weekly supply curve (orange line). Point A represents a point along his supply curve. The
price of cinnamon rolls is $2.25 per roll, which is given by the black horizontal line.
PRICE (Dollars per roll)
9.00
8.25
7.50
6.75
6.00
5.25
4.50
3.75
3.00
2.25
Price
1.50
A
0.75
Supply
Paolo's Weekly Supply
0
0
2
4
6
8
10 12 14 16 18 20 22 24
QUANTITY (Rolls)
(?)
Using the previous graph, you can determine that Paolo is willing to supply his 6th weekly roll for $
producer surplus earned from supplying the 6th roll is $
Since he receives $2.25 per roll, the
Suppose the price of cinnamon rolls were to rise to $3.00 per roll. At this higher price, Paolo would receive a producer surplus of $
6th roll he sells.
from the
The following graph plots the weekly market supply curve (orange line) for cinnamon rolls in a hypothetical small economy.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd708400f-324c-41a4-92bd-d35768db5c96%2F520b5879-fac2-44c8-aab1-272d40eb340e%2Fxbiyq2w_processed.png&w=3840&q=75)
Transcribed Image Text:7. Producer surplus for an individual and a market
Suppose the market for cinnamon rolls is perfectly competitive, so sellers take the market price as given. Paolo manages a bakery that offers
cinnamon rolls for sale. The following graph plots Paolo's weekly supply curve (orange line). Point A represents a point along his supply curve. The
price of cinnamon rolls is $2.25 per roll, which is given by the black horizontal line.
PRICE (Dollars per roll)
9.00
8.25
7.50
6.75
6.00
5.25
4.50
3.75
3.00
2.25
Price
1.50
A
0.75
Supply
Paolo's Weekly Supply
0
0
2
4
6
8
10 12 14 16 18 20 22 24
QUANTITY (Rolls)
(?)
Using the previous graph, you can determine that Paolo is willing to supply his 6th weekly roll for $
producer surplus earned from supplying the 6th roll is $
Since he receives $2.25 per roll, the
Suppose the price of cinnamon rolls were to rise to $3.00 per roll. At this higher price, Paolo would receive a producer surplus of $
6th roll he sells.
from the
The following graph plots the weekly market supply curve (orange line) for cinnamon rolls in a hypothetical small economy.
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