Mind Tap - Cengage Learning CENGAGE MINDTAP Homework (Ch 07) Kevin's Weekly Supply 7.50 6.75 6.00 5.25 4.50 3.75 3.00 Price 2.25 A 1.50 0.75 Supply 2 4 8 10 12 14 16 18 20 QUANTITY (Slices of...

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Extracted text: Mind Tap - Cengage Learning CENGAGE MINDTAP Homework (Ch 07) Kevin's Weekly Supply 7.50 6.75 6.00 5.25 4.50 3.75 3.00 Price 2.25 A 1.50 0.75 Supply 2 4 8 10 12 14 16 18 20 QUANTITY (Slices of cheesecake) From the previous graph, you can tell that Kevin 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, Kevin 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. PRICE (Dollars per slice)


Extracted text: CENGAGE MINDTAP Q Search th Homework (Ch 07) 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. Small Economy's Weekly Supply 7.50 6.75 Initial PS (P=$3.00) 6.00 5.25 Additional PS (P=$3.75) 4.50 P=$3.75 3.75 3.00 P=$3.00 2.25 1.50 0.75 Supply 80 100 120 140 160 180 200 20 40 60 QUANTITY (Thousands of slices of cheesecake) PRICE (Dollars per slice)