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From the previous graph, you can tell that Nick is willing to supply his 8th slice of pizza for the producer surplus he gains
From the previous graph, you can tell that Nick is willing to supply his 8th slice of pizza for the producer surplus he gains from supplying the 8th slice of pizza is S each week. Since he receives $3.00 per slice, Suppose the price of pizza were to rise to $3.75 per slice. At this higher price, Nick would receive a producer surplus of of pizza he sells. The following graph shows the weekly market supply of pizza in a small economy. from the 8th slice Use the purple point (djsmond symbol) to shade the s,s representing producer surplus (PS) when the price (P) of pizza js $3.00 per slice. Then, use the green point (triangle symbol) to shade the sres repnssenting additional producer surplus when the price rises to $3.75 per slice. Small Economy's Weekly Supply P=S37S 225 Supply 20 Initial PS (P-300) Additional PS (P=S3.7S) 200 40 SO 80 100 120 180 QUANTITY (Thousands of slices of pizza)
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