Question

Tim mows neighborhood lawns for extra money. Suppose that he would be willing to mow one lawn for ​$14​, a second lawn for ​$16​, and a third lawn for ​$22. Also suppose that three neighbors are interested in having their lawns mowed. Mrs. Jones would be willing to pay ​$30 to have her lawn​ mowed, Mr. Wilson would be willing to pay ​$28, and Ms. Smith would be willing to pay ​$22.

Answer 1

The answer in what if Tom offers to mow lawns for $22 each, what will be his producer surplus?
Tim's producer surplus would be $14
Tim would be able to mow all three lawns at a price of $22, because all three of his neighbors would be willing to pay at least that much. Tim would receive a total of $22 x 3, or $66 for mowing the three lawns.
Tim's "supply curve" would be: he would be willing to mow three lawns for a total of $14 + $16 + $22, or $52.
He receives $66 for something that he would be willing to do for $52, so his producer surplus would be $14.