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MMLU / Elsa values her time at …

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

Elsa values her time at 50perhour,andtutorsDavidfortwohours.Davidiswillingtopay50 per hour, and tutors David for two hours. David is willing to pay 175 for two hours of tutoring, but they negotiate a price of $125 for the entire two hours. Which of the following statements is true about the transaction above:
Plain-text mathematical notation (without MathML)
Elsa values her time at 50perhour,andtutorsDavidfortwohours.Davidiswillingtopay175 for two hours of tutoring, but they negotiate a price of $125 for the entire two hours. Which of the following statements is true about the transaction above:
Original LaTeX notation
Elsa values her time at $50 per hour, and tutors David for two hours. David is willing to pay $175 for two hours of tutoring, but they negotiate a price of $125 for the entire two hours. Which of the following statements is true about the transaction above:

choices

  1. Consumer surplus is greater than producer surplus by between $50 and $75.
  2. Producer surplus is greater than consumer surplus by between $50 and $75.
  3. Consumer surplus is greater than producer surplus by more than $75.
  4. The difference between consumer and producer surplus is $25.

subject

high_school_microeconomics

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