Producer surplus for an individual and a market
From the previous graph, you can tell that Van is willing to supply his 8th slice of cheesecake for $ each week. Since he receives $3.00 per slice, the producer surplus he gains from supplying the 8th slice of cheesecake is $ Suppose the price of cheesecake were to rise to $3.75 per slice. At this higher price, Van would receive a producer surplus of $ from the 8th slice of cheesecake he sells. The following graph shows the weekly market supply of cheesecake in a small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of cheesecake is $3.00 per slice. Then, use the green point (triangle symbol) to shade the area representing additional producer surplus when the price rises to $3.75 per slice.Suppose the market for cheesecake is a perfectly competitive market-that is, sellers take the market price as given. Van owns a restaurant where he sells cheesecake. The following graph shows Van's weekly supply curve, represented by the orange line. Point A represents a point along his supply curve. The price of cheesecake is $3.00 per slice, as shown by the horizontal black line. Van's Weekly Supply 7.50 6.75 6.00 5.25 4.50 PRICE (Dollars per slice) 3.75 3.00 Price 2.25 A 1.50 0.75 Supply 2 10 12 14 16 18 20 QUANTITY (Slices of cheesecake)7. Producer surplus for an individual and a market Suppose the market for cheesecake is a perfectly competitive market-that is, sellers take the market price as given. Van owns a restaurant where he sells cheesecake. The following graph shows Van's weekly supply curve, represented by the orange line. Point A represents a point along his supply curve. The price of cheesecake is $3.00 per slice, as shown by the horizontal black line. Van's Weekly Supply 7.50 6.75 6.00 5.25 4.50 3.75 PRICE (Dollars per slice) 3.00 Price 2.25 A 1.50 0.75 Supply