Question 3. Econ Tutoring (21 points) My neighbor Sue has a son Max who just finished high school. Two weeks before the AP exam in microeconomics, Sue called me in a panic that Max needed help preparing. I agreed to tutor him in the week leading up to the exam, and Sue agreed to pay me $800. However, a few days later, I contracted Covid, and was too sick to tutor him. Max failed the exam. For the sake of this problem, let's assume we all agree that I'm a phenomenal tutor and Max would have passed if I hadn't gotten sick. Passing the exam would have saved one course's worth of tuition, which is $4,000 at the college he'll be attending this Fall. Sue sues me for damages. (a) Calculate expectation damages. (b) Other qualified tutors were originally available for $1,200, but were no longer available by the time I got sick. Calculate opportunity cost damages. I explain to Sue that I shouldn't owe damages because performance became impossible. (c) Who was the efcient bearer of the risk I would catch Covid? Why? What does this imply about whether or not I should owe damages? (d) Sue argues that I should have been more careJl about Covid, knowing how important the exam was to Max. Which rule expectation damages, opportunity cost damages, or no damages would have led me to make the \"efficient level of investment\" in avoiding Covid? Explain. Now Max learns that because he failed the AP exam, he won't be able to major in economics, and will have to major in something else. This will cost him $150,000 in lifetime earnings. He sues me for that amount. (e) I argue that if passing the exam was worth so much to him, Sue should have been paying me much more anyway, and our agreement shouldn't be enforced because the benets were so one-sided. Would this affect enforceability under the Bargain Theory? Could it affect enforceability under the common law? Explain. (f) Next, I argue that I shouldn't be responsible for that level of harm because I had no reason to suspect passing the exam was worth that much to him. What's the legal term for this? What does it imply about the damages I owe him? Explain why this is a good rule or a bad rule. Finally, suppose I didn't get Covid, but that after I agreed to tutor Max, the AP exam was cancelled due to concerns about widespread cheating. (g) I'm still happy to teach Max economics, and given our agreement, I demand my $800. Am I still entitled to it? Explain