Suppose our supplier could be induced to sell each unit for an amount exactly equal to her marginal willingness to sell. If she sold 10 units this way her total revenue would be an amount equal to the yellow shaded area to the right. If however she could sell all units at a price of 10 her revenue would be equal to the yellow shaded area + lavender shaded area
Her total revenue if she can sell all units at a price of 10 is 90 while if she only receives her exact marginal willingness to sell for each unit her revenue is or 49.5. This means her producer's surplus is equal to 40.5 if she sells all 9 units at a price of 10.
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