Suppose the market for quiche is perfectly competitive, so sellers take the market price as given. Hilary manages a restaurant that offers quiche forsale. The following graph plots Hilary's weekly supply curve (orange line). Point A represents a point along her supply curve. The price of quiche is$2.25 per slice, which is given by the black horizontal line.PRICE (Dollars per slice)9.008.257.506.756.005.254.503.753.002.251.500.7500PriceSupply2 4Hilary's Weekly SupplyA6 8 10 12 14 16QUANTITY (Slices of quiche)18+20 22 24Using the previous graph, you can determine that Hilary is willing to supply her 6th weekly slice of quiche for $per slice, the producer surplus earned from supplying the 6th slice of quiche is $Suppose the price of quiche were to rise to $3.00 per slice. At this higher price, Hilary would receive a producer surplus of $slice of quiche she sells.Since she receives $2.25from the 6th

Producer surplus is difference between price seller is receiving and the price which he is willing…

PRICE (Dollars per slice) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 + 0.75 + 0 Price Supply 02 4 6 Hilary's Weekly Supply A 8 10 12 14 16 QUANTITY (Slices of quiche) 18 20 22 24 (?) Using the previous graph, you can determine that Hilary is willing to supply her 6th weekly slice of quiche for per slice, the producer surplus earned from supplying the 6th slice of quiche is $ Since she receives $2.25 Suppose the price of quiche were to rise to $3.00 per slice. At this higher price, Hilary would receive a producer surplus of $ slice of quiche she sells. from the 6th

PRICE (Dollars per slice) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 + 0.75 + 0 Price Supply 02 4 6 Hilary's Weekly Supply A 8 10 12 14 16 QUANTITY (Slices of quiche) 18 20 22 24 (?) Using the previous graph, you can determine that Hilary is willing to supply her 6th weekly slice of quiche for per slice, the producer surplus earned from supplying the 6th slice of quiche is $ Since she receives $2.25 Suppose the price of quiche were to rise to $3.00 per slice. At this higher price, Hilary would receive a producer surplus of $ slice of quiche she sells. from the 6th

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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