...............

Question 24 4 pts The demand function for hours of tutoring is Qd = 40 - P and the supply function for hours of tutoring is Qs = P + 4. Because students who receive tutoring become more productive members of society, the market for tutoring generates a positive externality. The marginal social benefit (MSB) of tutoring is described by the function, MSB = 48 - Q. Note that price is expressed in dollars per tutoring hour and quantity is expressed in millions of tutoring hours. al if tutoring takes place at market equilibrium instead of the socially efficient equilibrium, what is the amount of dead-weight loss? b) If government provides subsidy in order to ensure socially efficient amount of tutoring, what is the amount of total cost for the government due to the subsidy? Edit View Insert Format Tools Table 12pt v Paragraph B I U A v Q V Tv Q E DV #