Suppose the market for banana bread is perfectly competitive, so sellers take the market price as given. Dmitri manages a restaurant that offersbanana bread for sale. The following graph plots Dmitri's weekly supply curve (orange line). Point A represents a point along his supply curve. Theprice of banana bread is $2.25 per slice, which is given by the black horizontal line.lice)PRICE (Dollars pe9.008.257.50 +6.75 +6.005.254.50 +3.753.002.251.500.7500PriceSupply2Dmitri's Weekly SupplyA+84 610 12 14 16 18QUANTITY (Slices of banana bread)20 2224(?)Using the previous graph, you can determine that Dmitri is willing to supply his 6th weekly slice of banana bread for $$2.25 per slice, the producer surplus earned from supplying the 6th slice of banana bread is $Since he receivesSuppose the price of banana bread were to rise to $3.00 per slice. At this higher price, Dmitri would receive a producer surplus of $the 6th slice of banana bread he sells.from The following graph plots the weekly market supply curve (orange line) for banana bread in a hypothetical small economy.Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of banana bread is $2.25 per slice.Then, use the green point (triangle symbol) to shade the area representing additional producer surplus when the price rises to $3.00 per slice.(?)PRICE (Dollars per slice)9.008.257.506.75 +6.005.254.503.753.002.251.500.75H0+0P=$3.00P=$2.25Small Economy's Weekly SupplySupply24 48 72 98 120 144 168 192 216 240 284 288QUANTITY (Thousands of slices of banana bread)>Initial PS (P=$2.25)AAdditional PS (P=$3.00)

Produce surplus is the difference between the price at which the supplier is willing to sell a…

Suppose the market for banana bread is perfectly competitive, so sellers take the market price as given. Dmitri manages a restaurant that offers banana bread for sale. The following graph plots Dmitri's weekly supply curve (orange line). Point A represents a point along his supply curve. The price of banana bread is $2.25 per slice, which is given by the black horizontal line.

Suppose the market for banana bread is perfectly competitive, so sellers take the market price as given. Dmitri manages a restaurant that offers banana bread for sale. The following graph plots Dmitri's weekly supply curve (orange line). Point A represents a point along his supply curve. The price of banana bread is $2.25 per slice, which is given by the black horizontal line.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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