(Solved): 7. Producer surplus for-an individual and a market Suppose the market for sourdough is perfectly co ...

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. Raphael manages a restaurant that offers sourdough for sale. The following graph plots Raphael'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 tine. Using the previous graph, you can determine that Raphael is willing to supply his 6th weekly slice of sourdough for $$\$2.25$$ per slice, the producer sumplus earned from supplying the 6th slice of sourdough is Suppose the price of sourdough were to rise to $$\$3.00$$ per slice. At this higher price, Raphael would recelve a producer surplus of 6th slice of sourdough he sells. The following graph plots the weekly market supply curve (orange line) for sourdouph in a hypothetical small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of sourdough 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. The following graph plots the weekly market supply curve (orange line) for sourdough in a hypothetical small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of sourdough is s2.25 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.