Quasimodo from your workbook has the utility function , where x is his consumption of earplugs and m is money left over to spend on other stuff. If he has $10,000 to spend on earplugs and other stuff and if the price of earplugs rises from $50 to $70, then his net consumer's surplus
A) falls by 800.
B) falls by 2,800.
C) falls by 600.
D) increases by 400.
E) increase by 1,600.

Question

Quasimodo from your workbook has the utility function  , where x is his consumption of earplugs and m is money left over to spend on other stuff. If he has $10,000 to spend on earplugs and other stuff and if the price of earplugs rises from $50 to $70, then his net consumer's surplus
A) falls by 800. 
B) falls by 2,800. 
C) falls by 600. 
D) increases by 400. 
E) increase by 1,600.

Quizplus · Accepted Answer

The Answer of Quasimodo from your workbook has the utility function  , where x is his consumption of earplugs and m is money left over to spend on other stuff. If he has $10,000 to spend on earplugs and other stuff and if the price of earplugs rises from $50 to $70, then his net consumer's surplus
A) falls by 800. 
B) falls by 2,800. 
C) falls by 600. 
D) increases by 400. 
E) increase by 1,600.

Quasimodo from Your Workbook Has the Utility Function