7. Producer surplus for an individual and a marketSuppose the market for cinnamon rolls is perfectly competitive, so sellers take the market price as given. Paolo manages a bakery that offerscinnamon rolls for sale. The following graph plots Paolo's weekly supply curve (orange line). Point A represents a point along his supply curve. Theprice of cinnamon rolls is $2.25 per roll, which is given by the black horizontal line.PRICE (Dollars per roll)9.008.257.506.756.005.254.503.753.002.25Price1.50A0.75SupplyPaolo's Weekly Supply00246810 12 14 16 18 20 22 24QUANTITY (Rolls)(?)Using the previous graph, you can determine that Paolo is willing to supply his 6th weekly roll for $producer surplus earned from supplying the 6th roll is $Since he receives $2.25 per roll, theSuppose the price of cinnamon rolls were to rise to $3.00 per roll. At this higher price, Paolo would receive a producer surplus of $6th roll he sells.from theThe following graph plots the weekly market supply curve (orange line) for cinnamon rolls in a hypothetical small economy.

In a perfectly competitive market, such as the one for cinnamon rolls in this scenario, producers…

Answered: 7. Producer surplus for an individual…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 55P: Table 3.9 illustrates the markets demand and supply for cheddar cheese. Graph the data and find the...

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Similar questions

Table 3.9 illustrates the markets demand and supply for cheddar cheese. Graph the data and find the equilibrium. Next, create a table showing the change in quantity demanded or quantity supplied, and a graph of the new equilibrium, in each of the following situations: The price of milk, a key input for cheese production, rises, so that the supply decreases by 80 pounds at every price. A new study says that eating cheese is good for your health, so that demand increases by 20 at every price.
What is the difference between the supply and the quantity supplied of a product, say milk? Explain in words and show the difference on a graph with the supply curve for milk.
13. The variety of supply curves The following graph displays four supply curves (LL, MM, NN, and OO) that intersect at point V. PRICE (Dollars per unit) 400 360 320 280 240 200 160 120 80 40 0 # 0 M Statement 40 80 W N + N +Y + N+ O 120 160 200 240 280 320 QUANTITY (Units) M 360 Between points V and W, curve NN is perfectly inelastic. Between points V and Y, curve 00 is inelastic. 400 Using the graph, complete the table that follows by indicating whether each statement is true or false. (?) Curve LL is more elastic between points V and X than curve OO is between points V and Y. True False O O
Frigid Florida Winter is Bad News for Tomato Lovers An unusually cold January in Florida destroyed entire fields of tomatoes and forced marry farmers to delay their harvest. Florida's growers are shipping only a quarter of their usual 2.5 million kilograms a week. The price has risen from $13.00 for a 12.5-kilogram bux a year ago in S60 now. Source: USA Today, March 3. 2010 Draw the demand curve for tomatoes and the supply curve for tomatoes in January 2009 if the equilibrium quantity of tomatoes is 200,000 boxes a week and the equilibrium price is $13 a box. Label the curvas. Draw a point to show the equilibrium quantity and equilibrium price. Label it 1. Show how the events in the news clip influence the market for tomatoes in January 2010 and decrease the quantity of tomatoes to 50,000 boxes and raise the price to $60 a box. Draw ather a new cemand curve or a new supply curve and label it. Draw a point to show the new equilibrium quantity and equilibrium price. Label it 2. se.xcF…
O Macmillan Learning Suppose the cost of lithium-ion batteries, an input into the production of electric vehicles, has dropped more steeply than expected. The accompanying graph depicts a market for electric vehicles. Demonstrate the effect of a reduction in the price of lithium-ion batteries by adjusting the accompanying diagram. Equilibrium price is now $ Equilibrium quantity is now thousand. thousand. Price ($1000s) 100 90 80 70 60 50 40 30 20 10 0 0 1 Market for Electric Vehicles 2 3 4 5 Quantity (1000s) € 6 7 S D 8 9 10
Ernie owns a water pump. Because pumping largeamounts of water is harder than pumping smallamounts, the cost of producing a bottle of waterrises as he pumps more. Here is the cost he incurs toproduce each bottle of water:Cost of first bottle $1Cost of second bottle $3Cost of third bottle $5Cost of fourth bottle $7a. From this information, derive Ernie’s supplyschedule. Graph his supply curve for bottledwater.b. If the price of a bottle of water is $4, how manybottles does Ernie produce and sell? How muchproducer surplus does Ernie get from thesesales? Show Ernie’s producer surplus in yourgraph.c. If the price rises to $6, how does quantity suppliedchange? How does Ernie’s producer surpluschange? Show these changes in your graph
101 section(2,3 &5)Dr. Abdulhadi Ibrahim / midterm exam Section 2,3 an based on the graph, the movement from S to S1 is called: Price Quantity Select one: O a. None of the answers are correct O b. increase in quantity supplied Oc decrease in quantity supplied Od. increase in supply Oe. increase in demand O f. decrease in supply
12. The variety of supply curves The following graph displays four supply curves (HH, II, JJ, and KK) that intersect at point A. PRICE (Dollars per unit) 20 18 16 14 12 10 4 2 0 0 H 2 4 J 6 K A 0+ +w E 8 10 12 QUANTITY (Units) K 14 16 J H 18 Đ 20
9. The variety of supply curves The following graph displays four supply curves (LL, MM, NN, and OO) that intersect at point V. PRICE (Dollars per unit) 200 180 160 140 120 100 80 60 40 20 0 H 0 M 20 40 60 W N X + +Y N >++N 80 100 120 140 160 QUANTITY (Units) O M 180 + 200 ?
7. Producer surplus for an individual and a market Suppose the market for gourmet cupcakes is perfectly competitive, so sellers take the market price as given. Dmitri manages a bakery that offers gourmet cupcakes for sale. The following graph plots Dmitri's weekly supply curve (orange line). Point A represents a point along his supply curve. The price of gourmet cupcakes is $2.25 per cupcake, which is given by the black horizontal line. PRICE (Delars per cupcake) ( 7:50 4.75 9.00 4.50 7.50 3.75 3.75 4.50 0.75 0 0 Price Supply 0.75 + 2 Using the previous graph, you can determine that Dmitri is willing to supply his 6th weekly cupcake for cupcake, the producer surplus earned from supplying the 6th cupcake is Suppose the price of gourmet cupcakes were to rise to $3.00 per cupcake. At this higher price, Dmitri would receive a producer surplus of from the 6th cupcake he sells. The following graph plots the weekly market supply curve (orange line) for gourmet cupcakes in a hypothetical small…
According to the graph shown, if price in this market is currently $14, there would be a Price $20 18 16 14 12 10 8. 6. 4 10 20 30 40 50 60 70 80 90 100 Quantity Select one: O a. shortage of 20 units O b. surplus of 20 units Oc shortage of 40 units d. surplus of 40 units
PRICE (Dollars per pastry) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 0 Price Supply 0 2 + 4 6 Kenji's Weekly Supply A 8 10 12 14 16 QUANTITY (Pastries) 18 20 22 24 Using the previous graph, you can determine that Kenji is willing to supply his 6th weekly pastry for $ the producer surplus earned from supplying the 6th pastry is $ Since he receives $2.25 per pastry, Suppose the price of pastries were to rise to $3.00 per pastry. At this higher price, Kenji would receive a producer surplus of $ pastry he sells. from the 6th

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