The following graph plots the weekly market supply curve (orange line) for quiche in a hypothetical small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of quiche 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) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 0 P=$3.00 P=$2.25 Supply 0 24 Small Economy's Weekly Supply 48 72 96 120 144 168 192 216 240 264 288 QUANTITY (Thousands of slices of quiche) Initial PS (P=$2.25) A Additional PS (P=$3.00) ?

The following graph plots the weekly market supply curve (orange line) for quiche in a hypothetical small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of quiche 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) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 0 P=$3.00 P=$2.25 Supply 0 24 Small Economy's Weekly Supply 48 72 96 120 144 168 192 216 240 264 288 QUANTITY (Thousands of slices of quiche) Initial PS (P=$2.25) A Additional PS (P=$3.00) ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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