Chapter 07 Homework 7. Producer surplus for an individual and a market Suppose the market for sourdough is perfectly competitive, so sellers take the market price as given. Yakov manages a restaurant that offers sourdough for sale. The following graph plots Yakov's weekly supply curve (orange line). Point A represents a point along his supply curve. The price of sourdough is $2.25 per slice, which is given by the black horizontal line. Yakov's Weekly Supply 9.00 8.25 7.50 6.75 8 6.00 Dollars per slic 3.75 RICE ( 3.00 2.25 Price 1.50 YA 0.75 Supply O 0 2 4 6 8 10 12 14 16 18 20 22 24 QUANTITY (Slices of sourdough) * CO # m O Y I LL Z XChapter 07 Homework 8. Total economic surplus The following graph plots the supply and demand curves in the market for motor scooters. Use the black point (plus symbol) to indicate the equilibrium price and quantity of motor scooters. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. 400 360 Equilibrium 320 Demand 280 240 Consumer Surplus PRICE (Dollars per scooter 200 160 Producer Surplus Supply O 0 75 150 225 300 375 450 525 600 675 750 QUANTITY (Millions of scooters) Total surplus in this market is $ million. * CO - O