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:
(A)Consumer surplus is greater than producer surplus by between $50 and $75. (B)Producer surplus is greater than consumer surplus by between $50 and $75. (C)Consumer surplus is greater than producer surplus by more than $75. (D)The difference between consumer and producer surplus is $25.
D