John has been working as a tutor for $300 a semester. when the university raises the price it pays tutors to $400, emily enters the market and begins tutoring as well. how much does producer surplus rise as a result of this price increase?

The answer is: $100

Explanation:

John's producer surplus can be determined by subtracting the old tutor salary form the new tutor salary = $400 - $300 = $100

To determine Emily's producer surplus we must first decide if Emily was willing to work or not for the old $300 tutor salary. If Emily was willing to work for a $300 tutor salary, then her producer surplus will equal John's ($100). But personally I believe that Emily started working because the salary increased, so her producer surplus will be $0. The question is not very clear about when Emily decided to start working.

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.