Jack is considering renting out his spare bedroom on Airbnb. He puts a lot of effort and cost into ensuring it is as clean as possible and lists it on Airbnb for $1,200. Jeremy also has a room to rent but is content with being basically clean and renting it out for $900. Lina is looking to rent on Airbnb. For a very clean room, she would be willing to pay up to $1,400, and for a less clean room she is willing to pay $600. Suppose AirBNB labels Jack a "superhost" but not Jeremy. This seems supported by comments from previous renters about how clean Jack is but not in the case of Jeremy.This causes Lina to revise her probabilities. She thinks that people with the "superhost" have a 90% chance of being type "clean" (and therefore a 10% chance of not). For those without the superhost designation, she thinks they have a 20% chance of being type "clean" (and therefore 80% chance of not being clean).

1.Jack is a "clean" type. What would Lina's consumer surplus be if she rents from Jack?

2.What would be Lina's Consumer Surplus if she ends up renting from Jeremy?

3.What is Lina's expected consumer surplus from Jack the Superhost?

4.What is Lina's expected consumer surplus from Jeremy (who does not have a Supehost designation)?