Question

Tim mows neighborhood lawns for extra money. Suppose that he would be willing to mow one lawn for ​$13​, a second lawn for ​$17​, and a third lawn for ​$24. Also suppose that three neighbors are interested in having their lawns mowed. Mrs. Jones would be willing to pay ​$32 to have her lawn​ mowed, Mr. Wilson would be willing to pay ​$28​, and Ms. Smith would be willing to pay ​$24.

If Tim offers to mow lawns for ​$24 ​each, what will be his producer​ surplus?  ​

Answer 1

Tim would be able to mow all three lawns at a price of $23, because all three of his neighbors would be willing to pay at least that much. Tim would receive a total of $23 x 3, or $69 for mowing the three lawns.
Tim's "supply curve" would be: he would be willing to mow three lawns for a total of $13 + $19 + $23, or $55.
He receives $69 for something that he would be willing to do for $55, so his producer surplus would be $14.