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.
