Exhibit 6-11 If Ken is originally at point a in Exhibit 6-11 and then moves to point b due to a reduction in the price of neckties, his expenditure
A)increases from $20 to $25, increasing both consumer surplus and total utility
B)increases from $20 to $25, decreasing both consumer surplus and total utility
C)stays at $20, leaving both consumer surplus and total utility unchanged
D)stays at $20, but both consumer surplus and total utility increase
E)decreases as price falls, increasing both consumer and surplus and total utility

Question

Exhibit 6-11  If Ken is originally at point a in Exhibit 6-11 and then moves to point b due to a reduction in the price of neckties, his expenditure
A)increases from $20 to $25, increasing both consumer surplus and total utility 
B)increases from $20 to $25, decreasing both consumer surplus and total utility 
C)stays at $20, leaving both consumer surplus and total utility unchanged 
D)stays at $20, but both consumer surplus and total utility increase 
E)decreases as price falls, increasing both consumer and surplus and total utility

Quizplus · Accepted Answer

The Answer of Exhibit 6-11  If Ken is originally at point a in Exhibit 6-11 and then moves to point b due to a reduction in the price of neckties, his expenditure
A)increases from $20 to $25, increasing both consumer surplus and total utility 
B)increases from $20 to $25, decreasing both consumer surplus and total utility 
C)stays at $20, leaving both consumer surplus and total utility unchanged 
D)stays at $20, but both consumer surplus and total utility increase 
E)decreases as price falls, increasing both consumer and surplus and total utility

Exhibit 6-11 If Ken Is Originally at Point a in Exhibit