For questions 1 - 3 use the following information. Songs for Kids is the sole provider of singing lessons for kids in a town. From their experience and data, Songs for Kids believes that the firm faces two types of customers: Type A customers who are serious singers, and Type B customers who are just enjoying singing for the fun of it. Songs for Kids offers 15 minute, 30 minute, 45 minute, and 60 minute lessons (kids can't concentrate for longer than that). The following table indicates the willingness to pay and group size of each customer type.

WTP

	15 min	30 min	45 min	60 min	Group Size
Type A	$50	$70	$85	$90	100
Type B	$26	$34	$40	$40	100

The following table indicates the marginal willingness to pay (MWTP) values for incremental 15 minutes of lesson time and the group size of each customer type: MWTP

	1	2	3	4	Group Size
Type A	$50	$20	$15	$5	100
Type B	$26	$8	$6	$0	100

All costs can be ignored (the instructors are aspiring singers and are willing to work for next to nothing, so assume the marginal cost is zero). Thus, Songs for Kids' revenue is also its profit. As always when setting prices, assume that any customer who derives the same consumer surplus from multiple options will behave as the seller desires.

1. Suppose that Songs for Kids offers its lessons at a fixed price of $10 per 15 minutes of lesson time. That is, a customer would pay $10 for a 15-minute lesson, $20 for 30 minutes, etc. What are the resulting total revenue, total consumer surplus, and deadweight loss? A. Total revenue = $3,000; total CS =$5,500; deadweight loss =$4,500 B. Total revenue = $4,000; total CS =$7,100; deadweight loss =$1,900 C. Total revenue = $4,250; total CS =$1,600; deadweight loss =$6,600 D. Total revenue =$4,500; total CS =$11,900; deadweight loss =$6,400 E. None of the above is correct