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Using the previous graph, you can determine that Antonio is willing to supply his 6th weekly slice of banana bread for $ . Since he
Using the previous graph, you can determine that Antonio is willing to supply his 6th weekly slice of banana bread for $ . Since he receives $2.25 per slice, the producer surplus earned from supplying the 6th slice of banana bread is $ Suppose the price of banana bread were to rise to $3.00 per slice. At this higher price, Antonio would receive a producer surplus of $ from the 6th slice of banana bread he sells. The following graph plots the weekly market supply curve (orange line) for banana bread in a hypothetical small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of banana bread 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. Small Economy's Weekly Supply 9.00 8.25 7.50 Initial PS (P=$2.25) 6.75 A 6.00 Additional PS (P=$3.00) 5.25 PRICE (Dollars per slice) 4.50 3.75 P=$3.00 3.00 2.25 P=$2.25 1.50 0.75 Supply 0 24 48 72 96 120 144 168 192 216 240 264 288 QUANTITY (Thousands of slices of banana bread)Suppose the market for banana bread is perfectly competitive, so sellers take the market price as given. Antonio manages a restaurant that offers banana bread for sale. The following graph plots Antonio's weekly supply curve (orange line). Point A represents a point along his supply curve. The price of banana bread is $2.25 per slice, which is given by the black horizontal line. (? ) Antonio's Weekly Supply 9.00 8.25 7.50 6.75 6.00 5.25 PRICE (Dollars per slice) 4.50 3.75 3.00 2.25 Price 1.50 0.75 Supply 2 10 12 14 16 18 20 22 24 QUANTITY (Slices of banana bread) Using the previous graph, you can determine that Antonio is willing to supply his 6th weekly slice of banana bread for $ . Since he receives $2.25 per slice, the producer surplus earned from supplying the 6th slice of banana bread is |$ Suppose the price of banana bread were to rise to $3.00 per slice. At this higher price, Antonio would receive a producer surplus of $ from the 6th slice of banana bread he sells
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