The diagram to the right illustrates the supply curve for hot dogs by Frank's Frankfurters, a local hot dog producer. Calculate the dollar value of producer surplus if equilibrium price is $0.20 per dozen. 1.) Using the point drawing tool, find the quantity that Frank's Frankfurters is willing to supply if equilibrium price is $0.20 per dozen. 2.) Using the triangle drawing tool, illustrate the amount of producer surplus that Frank receives if equilibrium price is $0.20 per dozen. Carefully follow the instructions above and only draw the required objects. Frank's producer surplus from producing the optimal quantity of hot dogs per month is $ month. million per Price per dozen ($) Supply of Hot Dogs 2.00- 1.80- 1.60- 1.40- 1.20- 1.00- 0.80- 0.60- 0.40- 0.20-1 0.00 S 10 20 30 40 50 60 70 80 90 100 Quantity of hot dogs per month (millions)
The diagram to the right illustrates the supply curve for hot dogs by Frank's Frankfurters, a local hot dog producer. Calculate the dollar value of producer surplus if equilibrium price is $0.20 per dozen. 1.) Using the point drawing tool, find the quantity that Frank's Frankfurters is willing to supply if equilibrium price is $0.20 per dozen. 2.) Using the triangle drawing tool, illustrate the amount of producer surplus that Frank receives if equilibrium price is $0.20 per dozen. Carefully follow the instructions above and only draw the required objects. Frank's producer surplus from producing the optimal quantity of hot dogs per month is $ month. million per Price per dozen ($) Supply of Hot Dogs 2.00- 1.80- 1.60- 1.40- 1.20- 1.00- 0.80- 0.60- 0.40- 0.20-1 0.00 S 10 20 30 40 50 60 70 80 90 100 Quantity of hot dogs per month (millions)
Chapter4: Markets In Action
Section: Chapter Questions
Problem 5SQP
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Transcribed Image Text:The diagram to the right illustrates the supply curve for hot dogs by Frank's Frankfurters, a local hot dog
producer. Calculate the dollar value of producer surplus if equilibrium price is $0.20 per dozen.
1.) Using the point drawing tool, find the quantity that Frank's Frankfurters is willing to supply if
equilibrium price is $0.20 per dozen.
2.) Using the triangle drawing tool, illustrate the amount of producer surplus that Frank receives if
equilibrium price is $0.20 per dozen.
Carefully follow the instructions above and only draw the required objects.
Frank's producer surplus from producing the optimal quantity of hot dogs per month is $
month.
million per
Price per dozen ($)
Supply of Hot Dogs
2.00-
1.80-
1.60-
1.40-
1.20-
1.00-
0.80-
0.60-
0.40-
0.20-1
0.00
S
10 20 30 40 50 60 70 80 90 100
Quantity of hot dogs per month (millions)
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