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You Decide to Hire a Tutor to Help Prepare for Your

Question 27

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You decide to hire a tutor to help prepare for your graduate entrance exam.Your willingness to pay is provided in the following table.
 Haurs of Tutaring  Willingness to Puy  Tutar’s Opportunity  Cast per hour 1st $30$102nd $25$153rd $20$204th $15$255th $10$30\begin{array} { | c | c | c | } \hline \text { Haurs of Tutaring } & \text { Willingness to Puy } & \begin{array} { c } \text { Tutar's Opportunity } \\\text { Cast per hour }\end{array} \\\hline 1 ^ { \text {st } } & \$ 30 & \$ 10 \\\hline 2 ^ { \text {nd } } & \$ 25 & \$ 15 \\\hline 3 ^ { \text {rd } } & \$ 20 & \$ 20 \\\hline 4 ^ { \text {th } } & \$ 15 & \$ 25 \\\hline 5 ^ { \text {th } } & \$ 10 & \$ 30 \\\hline\end{array} The tutor you hire initially charges $20 per hour, but changes her fee to $30 per hour after learning that more time is needed.
a.At the initial price of $20, what is
i.Consumer surplus
ii.Producer surplus
b.At the price of $30 per hour, how many hours of tutoring will be achieved?
c.At the price of $25, what is
i.Consumer surplus
ii.Producer surplus
d.How does economic surplus compare for both prices? Comment on any difference.

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a.
i.$15.$10 for the 1st hour plus $5 for ...

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